Mexico freight assessment - International Council on Clean ... · MEXICO FREIGHT ASSESSMENT GLOBAL GREEN FREIGHT ACTION PLAN Authors: John Rogers, Robin Kaenzig and Steven J. Rogers

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FinalReport

MEXICOFREIGHTASSESSMENT

GLOBALGREENFREIGHTACTIONPLAN

Authors:

JohnRogers,RobinKaenzigandStevenJ.RogersSubmittedto:

TheInternationalCouncilonCleanTransportation(ICCT)

SanFranciscoCABy:

TheSustainableTransportandEmissionsServicesCompanyTSTESSAdeCV.

Calz.deTlalpan5005ACol.LaJoya,TlalpanMexicoDFCP14090

Incollaborationwith:

IntegratedTransportPlanningLtd50NorthThirteenthStreetMiltonKeynesMK93BPUK

Date: Aug24,2017

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ContentsTables......................................................................................................................vi

Figures.....................................................................................................................ix

Abbreviations..........................................................................................................xi

Acknowledgements................................................................................................xii

Chapter1:-ExecutiveSummary................................................................................1

Chapter2:-FreightcontextinMexicoandtheUSA..................................................3

FreightbymodeinMexicoandtheUSA..................................................................................................4

DomesticFreightinMexicoandtheUSA.............................................................................................4

ImportandExportfreighttoUSAandCanada.....................................................................................9

TransportInfrastructureinMexico........................................................................................................11

RoadSystem.......................................................................................................................................11

RailSystem.........................................................................................................................................13

Multimodalfreight.............................................................................................................................15

Pipelines.............................................................................................................................................15

TransportActivitybymodesotherthanRoad.......................................................................................17

FreighttransportedbyRail.................................................................................................................17

RailEnergyEfficiency..........................................................................................................................19

Principalportsbytonnage(nationalandInternational)2015...........................................................20

AirOperations....................................................................................................................................21

Chapter3:-CharacteristicsofIn-useTractor-trailersinMexico............................24

HighwayTractors....................................................................................................................................26

Registeredpopulation........................................................................................................................26

ActivepopulationofHighwayTractors..............................................................................................28

Highwaytractors–enginereplacementpractices.............................................................................38

Semi-trailers...........................................................................................................................................40

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Semi-trailerpopulation......................................................................................................................40

Ageandexpectedlifeofvehicles...........................................................................................................44

HighwayTractorTechnology..................................................................................................................47

Tires....................................................................................................................................................49

UsageofAirConditioning...................................................................................................................50

Chapter4:-VehiclePurchasing..............................................................................53

NewVehiclesales...................................................................................................................................55

Purchasepatternsofvehicles................................................................................................................57

UsedVehiclesales..................................................................................................................................58

Howarevehiclesforsalelocated.......................................................................................................58

Expectedsalespriceforusedunits....................................................................................................60

Motivesforchoosingaspecificmakeofhighwaytractor..................................................................61

Motivesforchoosingaspecificmakeofsemi-trailer.........................................................................62

Howpurchasesarefinanced..............................................................................................................63

Currentproblemswithfinancing.......................................................................................................64

Expectedpurchasesoverthecoming24months..............................................................................65

Chapter5:-Tractor-trailerUsageandOperatingCosts..........................................68

Theroleofthedifferenttypesoffleets.............................................................................................71

Highwaytractorkilometersperyear..................................................................................................72

Owner-operator.................................................................................................................................74

ForHireFleets....................................................................................................................................75

Industry&Commerce........................................................................................................................75

Construction&Mining.......................................................................................................................76

Agriculture..........................................................................................................................................77

Government.......................................................................................................................................78

Highwaytractornumberoftripsandtriplength...............................................................................79

FuelEconomy.....................................................................................................................................81

FuelCost.............................................................................................................................................85

OperatingExpenses................................................................................................................................85

Datacollectedonin-usetractor-trailersinMexico................................................................................89

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NationalEmissionsRegister(RENE).......................................................................................................90

Chapter6:-Tariffs,FreighttypeandLogistics........................................................92

TariffNegotiationandIncreases........................................................................................................93

TypeandSourceofFreightshipments...................................................................................................94

Vehicleloadingandscheduling..........................................................................................................96

Logistics..............................................................................................................................................97

Fleetmembershipofassociations/confederations..........................................................................98

Chapter7:-InstitutionalandRegulatoryFramework...........................................100

ImpactofDeregulation........................................................................................................................100

PresentRegulation...............................................................................................................................101

RequiredDocumentationandapplicablestandards............................................................................102

On-roadtransportpolicies(currentandfuture)..................................................................................104

Opportunitiesforapolicyframeworktopromotethegrowthofcleanfreight...............................105

Chapter8:-ProgramadeTransporteLimpioandrelatedprograms....................108

Currentpoliciesandprograms.............................................................................................................110

TransporteLimpio................................................................................................................................110

PurposeofTransporteLimpio..........................................................................................................110

Programachievements....................................................................................................................111

Challengesandbarriers....................................................................................................................116

Areasforfuturedevelopment..............................................................................................................119

FurtherhomologationwithSmartWay............................................................................................120

HowfarcanTransporteLimpiogointhenext10years...................................................................122

ProgramfortheModernizationoftheFederalMotorCarrierFleet....................................................122

Challengesandbarriers....................................................................................................................123

FederalMotorCarrierScrappageScheme...........................................................................................124

Challengesandbarriers........................................................................................................................124

Futurepoliciesandprograms...............................................................................................................125

MexicanOfficialStandardNOM-044................................................................................................125

FederalRoadFreightTransportNAMA(forowneroperatorsandsmallerfleetcarriers)...............126

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Chapter9:-Fuelefficiencyandemissionsstandards...........................................127

EmissionstandardsfornewheavydutydieselvehiclesinMexico......................................................128

DieselEngineStandards...................................................................................................................129

EmissionstandardsforIn-useHeavyDutydieselvehiclesinMexico..................................................133

Previouslimits..................................................................................................................................134

CurrentLimits...................................................................................................................................134

Testprocedure.................................................................................................................................135

TestFrequency.................................................................................................................................135

TestFacilities....................................................................................................................................135

TestEffectiveness.............................................................................................................................135

TestResults......................................................................................................................................136

FuelefficiencystandardsintheUSA................................................................................................136

ANNEX:.................................................................................................................138

ApproachandMethodology................................................................................138

a) Informationavailablefrompublicsources...................................................................................138

b) InformationavailablefrompreviousstudiesconductedbyTSTES..............................................139

c) Newfieldsurveyandinterviewdata............................................................................................140

HowtheactivepopulationofHighwayTractorswasdetermined.......................................................141

ActivepopulationofHighwayTractorsinthecurrentsurvey..........................................................144

ActivepopulationofSemi-trailersinthecurrentsurvey.................................................................147

References............................................................................................................149

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Tables

Table1-DomesticfreighttransportbymodeinMexico.............................................................................8Table2-DomesticfreighttransportbymodeinUSA..................................................................................8Table3-DomesticfreighttrafficbymodeinMexico..................................................................................8Table4- DomesticfreighttransportbymodeinUSA.............................................................................9Table5-EXPORTMerchandisetradeofMexicotoNAFTAcountriesandtheworldbymajorproductgroup,2014..................................................................................................................................................9Table6-IMPORTMerchandisetradeofMexicofromNAFTAcountriesandtheworldbymajorproductgroup,2014..................................................................................................................................................9Table7-PrincipalportsofEntry/Exitforfreightto/fromNAFTAtradingpartners...................................10Table8-TransportInfrastructureinMexico.............................................................................................11Table9-ConstructionofnewpipelinesinMexicoupto2017..................................................................16Table10-PrincipalproductstransportedbyRailinMexico......................................................................18Table11-FreighttransportedbyRailandfuelefficiencyinMexico.........................................................19Table12-PrincipalportsbyfreighttonnageinMexico............................................................................21Table13-YearlyTradeRatiosofValuetoWeightbetweenUSA-MEXICO(importvaluetotheUSAincurrentU.S.dollarsandimportweightinKg)............................................................................................22Table14-PrincipalstatesforAirfreightinMexico...................................................................................23Table15StateswithmostregisteredHighwayTractors(2016)................................................................27Table16--ActiveparcofHighwayTractorsin2015(MacKaystudy).......................................................29Table17-Comparisonofregisteredvsin-usehighwaytractorsin2015..................................................30Table18-PopulationofHighwayTractorsinactivefleetusage...............................................................31Table19-Top100delautotransporteT21(10aEdición)Dec2016..........................................................34Table20-HighwayTractorsbymake........................................................................................................38Table21-Enginesbymake........................................................................................................................39Table22-Ratioofsemitrailersperhighwaytractorbyvocation..............................................................41Table23-Semi-trailerbytype...................................................................................................................43Table24-Semi-trailerbymake.................................................................................................................44Table25–MakeofTireused.....................................................................................................................50Table26-UsageofAirConditioning..........................................................................................................51Table27-Popularsitesforusedhighwaytractors....................................................................................59Table28-Howdoyoufindtheunittobeabletobuyit?..........................................................................60Table29-Expectedsecond-handresaleprice...........................................................................................61Table30–ReasonsforchoosingthismakeofHighwayTractor................................................................62Table31-ReasonsforchoosingthismakeofSemi-trailer........................................................................62Table32-Howthepurchaseofaunitwasfinanced.................................................................................63Table33-Howhighwaytractorpurchaseswerefinanced........................................................................64Table34-Problemsassociatedwithobtainingfinance.............................................................................65

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Table35-NumberofHighwayTractorsthatareexpectedtobeboughtorsoldoverthecoming24months.......................................................................................................................................................66Table36-NumberofSemi-trailersthatareexpectedtobeboughtorsoldoverthecoming24months67Table37-AveragekmsbyageofvehiclebyVocation..............................................................................73Table38-Averagetriplength(kms)byageandvocation.........................................................................80Table39-Averagenumberoftripspermonthbyageandvocation.........................................................81Table40-Averagefueleconomykm/L)byageandvocation...................................................................83Table41-Illustrativedrivecycleexamples.................................................................................................84Table42-Ratiooftrailerspertractorinthe2011and2017studies........................................................85Table43-OperatingExpensesforHighwayTractors(thousandsofpesos)..............................................87Table44–DifferencesinOperatingExpensesforHighwayTractorsbyVocation(thousandsofpesos)..88Table45-Otherexpenseitemsmentionedbytheinterviewees...............................................................89Table74-Whichcontrolsdofleetsregularlykeep?..................................................................................90Table46-TariffNegotiation......................................................................................................................94Table47-FrequencyofTariffIncreases....................................................................................................94Table48-Whodefinestheexactrouteanddeparturetime.....................................................................98Table50-Membershipswithassociations/confederations/transportorganizations............................99Table51-WeightandDimensions...........................................................................................................103Table52-TransporteLimpiomarketedfuelsavingsfromstrategiesandtechnology............................111Table57-Howoftendoyoumeasureprogress?....................................................................................113Table58-Haveyoumadechangestoimprovetheperformanceandemissionsofyourvehicles?Which?..................................................................................................................................................................113Table59-Changesmadetoimprovetheperformanceandemissionsoftheirvehicles........................114Table60-Changesintervieweesplanttomaketoimprovetheperformanceandemissionsoftheirvehicles.....................................................................................................................................................114Table61-Changesmadetoimprovetravelscheduling..........................................................................115Table56-EXAMPLESOFSMARTWAYBRANDING.EPA(2016)................................................................117Table54-SmartWayandTransporteLimpioperformancestatistics......................................................120Table55-SmartWaymeasuresagainstTransporteLimpio.....................................................................121Table53-:Currentscrappageincentivesagainstvalueofoldvehicles..................................................124Table64-Max.PermissibleEmissionsStandards;Heavy-dutyVehiclesCompliance.............................130Table65-MaximumPermissibleEmissionsforHeavy-dutyVehiclesing/bhp-hr..................................130Table66-MaximumPermissibleEmissionsforHeavy-dutyVehiclesing/kwhr.....................................130Table67-Frameworkoftheproposedstandardsfor2019.....................................................................131Table68-U.S.certificationlimitvaluesforheavy-dutyengines.............................................................132Table69-Europeancertificationlimitvaluesforheavy-dutyengines....................................................132Table70-Usefulliferequirements..........................................................................................................132Table71-NOM-045-SEMARNAT-1996Limitsforvehiclesofover2,727kgsPBV...................................134Table72-NOM-045-SEMARNAT-2006Limitsfordieselvehiclesofover2,727kgsPBV........................134Table73-NOM-EM-167-SEMARNAT-2016Limitsfordieselvehiclesofover2,727kgsPBV..................134

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Table63–HeavyHEAVY-DUTY(Class8)COMBINATIONTRACTOREPAEMISSIONSSTANDARDS(GCO2/TON-MILE)ANDNHTSAFUELCONSUMPTIONSTANDARDS(GAL/1,000TON-MILE).......................137Table75-Face-to-faceInterviewdistribution.........................................................................................142Table76-Vocation..................................................................................................................................142Table77-TelephoneInterviewsbyCategory..........................................................................................143Table78--ActiveparcofHighwayTractorsin2015(MacKaystudy).....................................................143Table79-NumberofHighwayTractorsinthesample............................................................................146Table80-NumberofSemi-trailersinthesample...................................................................................148

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Figures

Figure1-DomesticfreighttransportinMexicoandtheUSA.....................................................................5Figure2-DomesticfreighttransportbymodeinMexicoandUSA.............................................................5Figure3-TotalfreighttransportbymodeinMexico..................................................................................6Figure4-DomesticfreighttrafficbymodeinMexicoandtheUSA............................................................7Figure5-PrincipalHighwaysinMexico.....................................................................................................12Figure6-HighwaysystemlengthinMexico..............................................................................................13Figure7-RailinfrastructureinMexico......................................................................................................14Figure8-Mexicanpipelineinfrastructure.................................................................................................16Figure9-FreighttransportedbyRailinMexico........................................................................................17Figure10-PrincipalproductstransportedbyRail.....................................................................................18Figure11-FuelefficiencyofRailfreightserviceinMexico.......................................................................20Figure12-PrincipalAirfreightroutes.......................................................................................................22Figure13--RegisteredParcofHighwayTractors(2016)SCTdata............................................................26Figure14-CompositionoftheParcofhighwayTractorsin2016bymodelyear.....................................27Figure15-PopulationofhighwayTractors(T2&T3)bystatein2016(SCTdata)....................................28Figure16-Comparisonofin-usevehiclenumbersfromtheMacKaystudy(2015)vsSCTregistrationdata....................................................................................................................................................................30Figure17-ParcHighwayTractors(2015)byvocation(MacKaystudy).....................................................33Figure18-ParcHighwayTractors(2015)byfleetsize(MacKaystudy).....................................................34Figure19-Distributionofthe2principalmakesofHighwayTractorbymodelyear................................38Figure20.Agraphtoshowreplacementofengines;istheengineoriginal?...........................................39Figure21-Registeredfleetofsemi-trailersinMexico..............................................................................40Figure22-RatioofSemi-trailersperhighwaytractor...............................................................................40Figure23-RatioTrailers/Tractorsbyvocation..........................................................................................41Figure24-USAratioofdryvanstohighwaytractor.................................................................................43Figure25-Averageageofvehiclesbyvocation........................................................................................45Figure26-Howmanyyearsmoreareyouplanningonusingyourhighwaytractor?...............................46Figure27-Semi-trailers:Howmanyyearsmoreareyouplanningonusingit?........................................47Figure28-Technologicallevelofhighwaytractors...................................................................................48Figure29–Fuelefficienttechnologypenetrationintheowner-operatorandsmallcarriersegment......52Figure30-Nationalsalesofhighwaytractors(Wholesale).......................................................................55Figure31–Totalnationalsalesofhighwaytractorsbymanufacturer1963-2010..................................56Figure32-2010Nationalsalesofhighwaytractorsbymanufacturer......................................................57Figure33-UsedHighwayTractorsonsalebymodelyear........................................................................59Figure34-Howhighwaytractorpurchaseswerefinanced.......................................................................64Figure35-Averagekmsbyageofvehicle.................................................................................................74Figure36-Owner/operator;Averagekmsbyageofvehicle...................................................................74Figure37-Forhire;Averagekmsbyageofvehicle...................................................................................75

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Figure38-Industry&Commerce;Averagekmsbyageofvehicle............................................................76Figure39-Construction&Mining;Averagekmsbyageofvehicle...........................................................77Figure40-Agriculture;Averagekmsbyageofvehicle.............................................................................78Figure41--Government;Averagekmsbyageofvehicle..........................................................................79Figure42-Averagetriplength(kms)byageandvocation........................................................................80Figure43-Averagenumberoftripspermonthbyageandvocation.......................................................81Figure44-Averagefueleconomykm/L)byageandvocation..................................................................82Figure45-FuelEconomyofHighwayTractorsbyvocationin2017vs2011.............................................85Figure46-TotalannualoperatingexpensesperunitforHighwayTractorsinpesos($MN)....................86Figure47-Totalperkmoperatingcost($MN/km)...................................................................................87Figure48-Percentagedistributionofoperatingexpenses.......................................................................88Figure49-Typeoffreightbyvocation......................................................................................................95Figure50-SourceofFreight......................................................................................................................95Figure51-LoadingofVehicle....................................................................................................................96Figure52-Tripscheduling.........................................................................................................................97Figure53-Tripprogramming....................................................................................................................98Figure54-CarbonemissionssavingsresultingfromTransporteLimpio(2008to2014)........................112Figure55-KnowledgeandparticipationintheProgramadeTransporteLimpio...................................113Figure56-Numberoffleetsinthesamplebyfleetsize(DataMac2015)...............................................142Figure57-Numberoffleetsinthesamplebyfleetsize(ICCTsurvey)....................................................144Figure58-NumberofHighwayTractorsinthesample...........................................................................145Figure59-AveragenumberofHighwayTractorsperfleetbymodelyearinthesample.......................146Figure60-Averageageofhighwaytractorsineachfleetagainstthenumberofhighwaytractorsineachfleet(ICCTsample)...................................................................................................................................147Figure61-NumberofSemi-trailersinthesample..................................................................................148

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Abbreviations

3PL Third-partylogisticscompanyAMDA AsociaciónMexicanadeDistribuidoresdeAutomotoresAMIA AsociaciónMexicanadeLaIndustriaAutomotrizAMMPAC AsociaciónMexicanadeMensajeríayPaqueteríaA.C.ANPACT AsociaciónNacionaldeProductoresdeAutobuses,Camionesy

TractocamionesANTP AsociaciónNacionaldelTransportePrivadoCANACAR CameraNacionaldelAutotransportedeCargaCANACINTRA CámaraNacionaldelaIndustriadeTransformaciónCCAC ClimateandCleanAirCoalitionCESPEDES ConsejoEmpresarialparaelDesarrolloSostenibleCO CarbonmonoxideCO2 CarbondioxideCONATRAM ConfederaciónNacionaldeTransportistasMexicanosCONCAMIN ConfederacióndeCámarasIndustrialesDGAF DirecciónGeneraldeAutotransporteFederalDGGCARETC DirecciónGeneraldeGestióndelaCalidaddelAireyRegistrodeEmisionesy

TransferenciadeContaminantesEMBARQ EMBARQisnowtheWRIRossCenterforSustainableCitiesEPA UnitedStatesEnvironmentalProtectionAgencyGIZ DeutscheGesellschaftfürInternationaleZusammenarbeitGmbHHC hydrocarbonsICCT InternationalCouncilonCleanTransportationINECC InstitutoNacionaldeEcologiayCambioClimaticoITDP InstituteforTransportationandDevelopmentPolicyMN MonedaNacional(Mexicanpesos)NAFTA NorthAmericanFreeTradeAgreementNAMA NationallyAppropriateMitigationActionsNGO Non-governmentalorganizationNOM NormaOficialMexicanaNOx nitrogenoxidesOEM OriginalEquipmentManufacturerPM particulatematterSCT SecretaríadeComunicacionesyTransportesSEMARNAT SecretaríadeMedioAmbienteyRecursosNaturalesSHCP-SAT ServiciodeAdministraciónTributariadelaSecretaríadeHaciendayCréditoPúblicoSMAEM SecretaríadeMedioAmbientedelEstadodeMexicoSmartway USEPA'sSmartWayTransportPartnershipTELMEX TelefonosdeMexicoTPP TranspacificAssociationAgreementTransporteLimpio VoluntaryCleanTransportprogramdevelopedbySEMARNATandSCT.TSTES TheSustainableTransportandEmissionsServicesCompanyUNFCC UnitedNationsFrameworkConventiononClimateChange

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Acknowledgements

ThisreporthasbeenpreparedfortheInternationalCouncilonCleanTransportation(ICCT)bytheSustainableTransportandEmissionsServicesCompany(TSTESSAdeCV)incollaborationwithIntegratedTransportPlanningLtd.ThisworkissupportedbytheClimateandCleanAirCoalition(CCAC).TheCCACisavoluntarypartnershipofgovernments,intergovernmentalorganizations,businesses,scientificinstitutionsandcivilsocietyorganizationscommittedtoimprovingairqualityandprotectingtheclimatethroughactionstoreduceshort-livedclimatepollutants.

Theauthorswouldliketoexpresstheirsincereappreciationforthevaluablehelp,guidance,supportandpatiencefromthestaffatICCT,particularlyKateBlumberg,SeniorFellow/MexicoLead;BenSharpe,SeniorResearcherandCanadaLead;CristianoFaçanha,Roadmap,GreenFreightandBrazilLead;andKeriBrowning,GrantsManager.

AspecialthankyouisparticularlyduetoIng.JudithTrujilloMachado,SubdirectoradelSectorTransportedeSEMARNATwhosehelp,guidance,andsupportwaskeytorealizingthisstudy.

AsincereexpressionofgratitudeisduetoMackay&Company,Lombard,Illinoiswhopermittedustosharethemostrecentvehiclefleetdatafromthelatest(2015)DataMac-MexicostudyperformedbyTSTES.Thisstudyinvolvesinformationcollectedfromalmost5000fleetstogetherwithanin-depthanalysisofheavydutyfleetutilization(includingClass8highwaytractorsandtrailers)andrepairpracticesinMexico.Ithasbeenconductedeveryfouryearssince1992andprovides—amongstotherthings—adetailedviewoftheactivevehiclefleet,whichdiffersconsiderablyfromthestatic,registeredvehicledistribution

TheauthorswouldadditionallyliketothanktheInstitutoNacionaldeEcologiayCambioClimatico(INECC)forallowingustoquotefindingsfromthestudyaperformedforthembyTSTES(2011)entitled“Caracterizacióndelaflotamexicanadevehículos”andDeutscheGesellschaftfürInternationaleZusammenarbeit(GIZ)GmbHforallowingustoquotefindingsfromthetwo-part2014studyperformedforthembyTSTESlookedatcommercialvehiclescrappageprogramsinMexico,andcomparedtothoseinothercountries.

Thestudywouldnothavebeenpossiblewithoutinputfromfleetsandothergovernmentalandnon-governmentalorganizations.Therewereobtainedinperson-to-personinterviewsandaquantitativefieldsurveydesignedto(a)tofilldatagaps,(b)refreshsomeoftheolderinformation,and(c)validatewherepreviousfindingsarestillfunctional.

Theparticipantsincludedineachgroupareshownbelow.

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Interviews

Name Company/Institution Functionl

AdriánAzuaraPerdomo

DaimlerVehículosComercialesMéxico(Freightliner)

GerentedeVentas

AdulfoVidalsRosas

Coca-ColaFEMSA Coord.Ctrol.Ambiental

AlejandroFuentesRomero

GreatDanedeMéxico DirectordeVentas,

AlexLongTheissen FemsaLogística PresidentedelaAsociaciónNacionaldeTransportePrivadoyDirectortécnicodeFemsaLogística

AlfonsoAyalaColín

TransportesAyalaColínSAdeCV Director

ArturoMassutierMorales

AsociaciónNacionaldeProductoresdeAutobuses,CamionesyTractocamiones

Formermanager

CarlosGilJiménez DirecciónGeneraldelAutotransporteFederalSCT

SubdireccióndeDesarrolloTecnológicoySeguridad

ChristanSánchezSantoyo

PETSTAR AdministradorTransporte

ClaudioGallegos ConfederaciónNacionaldeTransportistasMexicanos(COTRAM)

DirectorGeneral

CristinaSánchez TransportesElola CoordinadoraCTPAOEA

DanielGarcíaC. TracusalaRutadelSol Cacacitación

DanielaVillarreal Coca-ColaFEMSALogistica RelacionesInstitucionales

DavidHerreraLópezPortillo

AutoTransportesParadaHermanos CoordinadordeTráfico

ElenaZaldivar AutoExpressFronteraNorte GerentedeCalidad

ElizabethRamírez AutotransportesdeCargaTresguerras Ejec.Comercial

FabiolaDomínguezV.

TracusalaRutadelSol JefeCDiesel

FelipeJiménez AutoTransporteNacionaldeCargaTNC Gte.Operaciones

FranciscoBarrera SMAEdoMex DirectordeInvestigacioneImplementaciondeprotocolos

GabrielDeUriarteOccelli

UtilityTrailersdeMéxico DirectorComercialCorporativo

IgnaciodeJesúsMontoyaAyón

Bimbo-Barcel GerentedeEstudiosTécnicos

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IsabelAguiñaga AutotransportesdeCargaTresguerras JefeComercialMéxico

JaimeCaracheoR. TransportesEspecializadosAntoniodelaTorreeHijos

CoordinadorSHMA

JavierPadillaMartínez

BioPappel GerentedeLogística

JoséAntonioCortesMéndez

AlasdelMonte GerentedeMantenimiento

JuanManuelFloresEstrada

AutoTanquesOchoa(ATOSA) Coordinador

JuanManuelSalasMartínez

Transcooler Gerentedeoperaciones

JudithTrujilloMachado

SEMARNAT SubdirectoradelSectorTransporte

KarinaVillegas TransportadoraConsolidada EspecialistaenMarketing

LeonardoNúñez TransportesMexamerik Gte.Operaciones

LucianoAguilarCorona

FerrocarrilyTerminalValledeMéxico(FERROVALLE)

GerentedeOperaciones

LuisEnriqueRamírez

TransportadoraConsolidada EspecialistadeTransporteLimpio

LuisRubénFloresTapia

Coca-ColaFEMSA Gte.ControlAmbiental

MaribeldelCarmenPeñaLaurencio

AlasdelMonte Lic.Amb.

MaricelaHernándezHorta

TracusalaRutadelSol ControlleroperacionesCorporativo

MoisésDavidTellez

TransportesElola DirectordeOperaciones

MoisesOcaña FletesyTransportesRuíz Analista

MonserratRodríguezGarcía

AutotransportesOILSA JefedeProcesos

OmarGarcíaCuriel TransportesEspecializadosAntoniodelaTorreeHijos

SHMA

OswaldoMuñoz Flechisa Ventas

PabloJesúsMercado

SCT DirectordeNormatividad

PedroMenesesRetalsa

Cemex Rep.Legal

RafaelTapiaVelázquez

GrupoBimbo DireccióndeVehículos

RobertoMelchor FletesyTransportesRuíz JefedeMantenimiento

RodolfoRodríguezJiménez

Tracomex,S.A.DeC.V. Gte.deoperaciones

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RodrigoPerrusquíaMáximo

SEMARNAT JefedeDepartamentodeGestiónAmbientaldelSectorTransporte

SergioZirath INECC Directordeinvestigaciónsobrelacalidaddelaireyloscontaminantesclimáticosdevidacorta

FieldSurveyParticipants

Fleet/Company Fleet/Company Fleet/Company

AguilasDelSureste GeodisGlobalSolutionsMéxicoS.A.deC.V. TransportesAyalaColínS.A.deC.V.

AlasDelMonteS.A.deC.V. LópezDomínguez TransportesBeltránAutoExpressFronteraNorteS.A.deC.V. LuisAltamirano TransportesBotello

AutotransportesOilsaS.A.DeC.V MejíaRodríguez TransportesDeCargaFortínBimboS.A.deC.V. Méndez TransportesElola,S.A.deC.V.BioPappel,S.A.deC.V. OrtegaMateriales TransportesFuentes

CemexTransporte PetstarReciclado(AvangardMexicoSdeRLdeCV) TransportesHernández

CésarHernández T.P. TransportesMares

DesperdicioIndustrialDelgado Tds,S.A.DeC:V. TransportesMexamerik,S.A.deC.V.

DestinoExpress TracomexS.A.deC.V. TransportesMon-Ro,S.A.deC.V.Diaz Transcooler TransportesParraEstafetaMexicanaS.A.deC.V.YEmpresasFiliales

TransportadoraConsolidadaS.A.deC.V. TransportesRoldán

FemsaLogística Transportec TransportesYMudanzasRuízFletesYTransportesRuiz TransportesAngeles Trasesu

ForrajesMadrigal TransportesAutoTanquesOchoa,S.A.deC.V.

ThestudywascoordinatedbyJohnRogersofTSTES;RobinKaenzig(ITP)ledtheInternationalandSmartWayanalysisassistedbyRubyStringerandothermembersoftheITPteam.ThefieldsurveyandinterviewswereorganizedandconductedbyJavierRodriguez(TSTES)withsupportfromArturoMassutier(GRUIDCO),JaimeMeza(TSTES)andothermembersoftheteam.StevenJ.Rogers(TSTES)managedinterviewanalysisandeditorialactivities.

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Chapter1:-ExecutiveSummary

ThisMexicoFreightAssessmentwasconductedin2017fortheInternationalCouncilonCleanTransportation(ICCT)bytheSustainableTransportandEmissionsServicesCompany,TSTESSAdeCV,MexicoinconjunctionwithIntegratedTransportPlanningLtd,England.

ICCTsponsoredthisprojecttoassessthefreightsysteminMexico,withafocusonon-roadgoodsmovement,asakeycontributortotheClimateandCleanAirCoalition’s(CCAC)GlobalGreenFreightActionPlanfocusedondevelopingandharmonizinggreenfreighteffortsonaglobalscaleinordertogetmaximumreductionsofblackcarbonandimprovedefficiencyfromfreighttransport.

Theprimarymotivationforthisprojectwastodevelopamuchdeeperunderstandingoftheon-roadfreightsysteminMexico.Thisfreightassessmentbuildsuptheknowledgebaseinseveralareas,includingmarketdynamics,opportunitiesandbarriersfortruckfuel-savingtechnologiesandoperationalmeasures,andthepotentialbenefitsofbuildingamorerobustandextensiveTransporteLimpioprogram,andharmonizingitwithSmartWay.

Thescopeoftheprojectwasexclusivelyfocusedonfreighttransportationbytractor-trailers,andinclusiveofthevariousactorsthatimpactthefreightsystem.ThisresearchlookstopresentacompendiumofknowledgetogovernmentagenciesandotherstakeholdersinMexicowhoaredevelopingstrategiesforreducingtheenvironmentalimpactsofthetruckingsectorandgivethesedecision-makersbettertoolstoevaluatehowagreenfreightprogramfitsintotheoverallportfolioofpoliciesaimedatthefreightsector.

ThestudycompilespubliclyavailabledatawithfindingsfrompreviousstudiesconductedbyTSTES(andincludedwithoriginalclientagreement)andinputfromfleetsandothergovernmentalandnon-governmentalorganizations.Informationwasgatheredfromperson-to-personinterviewsandalimitedquantitativefieldsurveywith89stakeholdersfromdifferentlevelsoftheon-roadfreightsysteminMexicoto(a)filldatagaps,(b)updateolderinformation,and(c)validatepreviousfindingswhereadequate.Althoughresourceconstraintspreventedastatisticallysignificantanalysisofanswers,thestudyprovidesthemostrecentdataavailableontheMexicanon-roadfreightsector.

Thisdataiscollatedinto8thematicgroups,(inChapters2through9)andahighlightofeachispresentedatthebeginningofthecorrespondingchapters:

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Chapter2:-FreightcontextinMexicoandtheUSA..................................................3onfreighttransportinMexicoinallmodes(road,rail,waterborneandair)tosetthecontextforthesub-sectorthatisthethemeofthisstudy,on-roadfreighttransportedbyhighwaytractor-trailers.

Chapter3:-CharacteristicsofIn-useTractor-trailersinMexico............................24ontheregistered,andactivein-usepopulationofhighwaytractorsandsemi-trailersinMexico.Itpresentsdatabysizeoffleetandbyvocation,andlooksattheexpectedlifeoftheseunits.

Chapter4:-VehiclePurchasing..............................................................................53onhowfleetsbuyhighwaytractorsandsemi-trailers.Itlooksatthesourcesofinformation,advertising,andpublicitythatisusedtopromotesecond-handvehiclesales,howpurchasesarefinanced,andthemotivesforselectingaspecificbrand

Chapter5:-Tractor-trailerUsageandOperatingCosts..........................................68ontheroleofthedifferentplayersinthissub-sector.Itlooksatvehicleusage,triplengthandfrequency.Itevaluatesfueleconomyandotheroperatingcosts,withdetailsbyageofvehicleandbyvocation.Italsolooksatwhoiscollectinginformationontrav¡ctor.traileropderationinMexico

Chapter6:-Tariffs,FreighttypeandLogistics........................................................92ontheinteractionbetweentransport(For-Hire)fleetsandtheirclients,lookingattariffnegotiations,fareincreasesandtripprogramming

Chapter7:-InstitutionalandRegulatoryFramework...........................................100ontheinstitutionalandregulatoryframeworkthatsurroundson-roadfreighttransportinMexico

Chapter8:-ProgramadeTransporteLimpioandrelatedprograms....................108onstandardsandprogramsinMexicothatpromotecleantransport—suchastheProgramadeTransporteLimpio—andlooktomodernizethevehiclefleet.

Chapter9:-Fuelefficiencyandemissionsstandards...........................................127onfuelefficiencyandemissionsstandardsintheUSAandMexico

AnANNEXprovidesinformationontheApproachandMethodologyandhowtheactivepopulationofHighwayTractorswasdetermined.

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Chapter2:-FreightcontextinMexicoandtheUSA

ThischaptercompilesinformationonfreighttransportinMexicobymode(Road,Rail,WaterborneandAir)tosetthecontextforamoredetailedevaluationofon-roadfreighttransportedbyhighwaytractor-trailers.

OverallfreightmarketinMexicoAlthoughtheoverallfreightmarketinMexicoislessthanone-elevenththesizeofthatintheUS(intermsoftonnestransported),theon-roadshareinMexicoismuchgreateraccountingfor56percentofthedomesticandinternationalfreighttransportandthusitsrelativeimportancetotheeconomyismuchlarger.t-kmAveragetransportdistancesintheUSaretwiceaslongasthoseinMexico.RoadAccordingtotheMinistryofCommunicationsandTransport(SCT),MexicoinvestedmorethanUS$2.05billionininfrastructureinthefirsthalfof2015.Thecurrentgovernmenthasbuilt17motorways(US$3.975billion)andestimatesthat35morearerequired(US$7.2billion).Overthelastdecadehighwayextensionhasincreasedatacombined10-yearaverageannualgrowthratebetween3.1and3.5percentwithasurgein2015.Thisishigherthantheoverallfreightmarket,whichgrewby1.5percentperyearbetween2005and2015.However,whilethecountryisbuildingnewroads,maintenanceofexistingroadsisbelowexpectationswhichlimitstheefficiencyofthissector.AccordingtotheWorldEconomicForum,among140nations,Mexicoranks52ndinroadqualitycompetitiveness.RailThesecondmostimportantmodeintermsoffreighttrafficinMexicoisRail,whichaccountedfor30.5billiont-kmsofdomesticfreightin2015(versus245billionforRoad).In2015therewasa3.4percentincreaseinton-kilometerstransportedbyRail,risingto83.4billiont-km(includingimportfreightwhichgrewbyonethirdoverthepreviousyear).ThemainproductstransportedbyRailarecorn(11.8percent),cement(8.3percent),containers(7.5percent)andironandsteelsheetsandplates(6.3percent).OverthelastdecadesRailenergyefficiencyhasgenerallyimprovedtoitscurrent(2015)valueof118t-km/Lofdiesel.ThisissimilartothefuelefficiencyofrailfreightintheUSAin1985.In2015theUSFreightRailfuelefficiencywas201t-km/L(473ton-milesperUSgallon).

ChapterHighlights

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FreightbymodeinMexicoandtheUSA

DomesticFreightinMexicoandtheUSA

AlthoughtheoverallfreightmarketinMexicoislessthanone-elevenththesizeofthatintheUSA(intermsoftonstransported:seeFigure1)1,theon-roadshareismuchgreateraccountingfor56percentofthedomesticandinternationalfreighttransportandthusitsrelativeimportancetotheeconomyismuchlarger.In2015,86percentofdomesticfreightwascarriedbyRoad(comparedto48percentintheUSA);only8percentbyRailand6percentbySea2(seeFigure2).AccountingforInternationalfreight3,theproportionofMexicanfreightbySeaandRailincreasesto31percentand13percent,respectively,leavingRoadwithamodeshareof56percent(Figure3).

1In2013theUSdomesticmarketwas6,710vs600millionmetrictonsinMexico2ThefreightnumbersinMexicodonothavecomparablefiguresforpipelinetransport,whichisexcluded.3Internationalfreightisthatwhichhasthegoodoriginordestinationinadifferentcountry.Nationalfreighthasgoodsoriginanddestinationwithinthesamecountry.Onethirdofallfreighttransported(intons)inMexicoisinternational(import/export).

Themainrailroadcompanies-FerrocarrildeMéxico(Ferromex)andKansasCitySouthernofMexico(KCSM)-wereexpectedtoinvestaboutUS$3billionby2020toexpandthetractionofthelocomotivefleet,aswellasintherenovationoftracksandtrains.MultimodaltransportisconsideredanareaofopportunityinnationallogisticstoboostMexico'sdevelopment.SeaMexico’sprincipalportsarereachingthelimitoftheircapacityanddemandnewinvestments.PipelinesMexico’senergyreformin2013openedtheenergyindustrytovariousdegreesofprivateparticipationandcompetition.Oneresulthasbeenafastexpansionintheuseofimportedgas,withU.S.gasimportsasapercentageoftotaldemandclimbingfrom8percentin2000toaround44percentin2016creatingafastexpansionintheMexicanpipelinegridtohandlethisincreaseddemand.AirAirtonnagepalesincomparisontoothermodes(representingonly387thousandtonsin2015)concentratedin10states.

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Figure1-DomesticfreighttransportinMexicoandtheUSA

Source:http://nats.sct.gob.mx/ir-a-las-tablas-2/tabla-5.1(MEX&USA)

Figure2-DomesticfreighttransportbymodeinMexicoandUSA

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Source:SCTEstadísticaBásicadelAutotransporteFederal–2016andTercerInformedeGobierno(2015)4

Figure3-TotalfreighttransportbymodeinMexico

Whilstfreightistypicallymeasuredintons,freighttraffic(measuredinton-kilometers)5canbeabetterindicatorfortransportservices.Withthismetric(t-km)theUSAdomesticfreighttrafficisover22timeslargerthantheMexican6,showingthattheaveragetransportdistancesintheUSAaretwiceaslargeasthoseinMexico.

Whilston-roaddomesticfreighttrafficismuchlessinabsolutenumbersinMexicothanintheUSA(235billiont-kmsinMexicovs2,997billiont-kmsintheUSA–2013),itsrelativeimportanceislarger(seeFigure4).

4ThisfigureaddstodomesticfreightExport/importbyAir(0.5Mt),Water(255.5Mt)andRail(73.1Mt),Roadexport/importestimatedinapprox.60Mtisalreadyincludedindomestictraffic.5SeeError!Referencesourcenotfound.,Table3,andTable46235billiont-kmsinMexicovs2,997billiont-kmsintheUSA–2013-seeError!Referencesourcenotfound.

0%

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TotalfreighttransportbymodeinMexicoin2016(millionmetrictons)


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Source:http://nats.sct.gob.mx/ir-a-las-tablas-2/tabla-5.2(MEX&USA)

Figure4-DomesticfreighttrafficbymodeinMexicoandtheUSA

ThedomesticfreightmarketinMexico(seeTable1andTable2)hasexhibitedcontinuousgrowthoverthepast15years,despiteaslightcontractionin2009,witha10-yearannualgrowthrate(2005-2015)of1.7percent.Bycomparison,theUSAdomesticfreightmarketsufferedamajorcollapseduetotheeconomicdepressionin2007fromwhichithasnotrecovered.Its10-yearannualgrowthrate(2003-2013)hasbeen-1.9percent.

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ThemostrecentnumbersfortheUSA(2013),showthat48percentofdomesticfreightwascarriedbyRoad,28percentbyRailand18percentbyPipeline.Wateraccountedfor6percentofthetotaltonnage.

Table1-DomesticfreighttransportbymodeinMexico

DomesticfreighttransportbymodeinMexico(millionsmetrictons) 2000 2005 2010 2013 2014 2015 Air 0.1 0.1 0.1 0.1 0.1 0.1 Water 33.8 39.2 37.2 36.4 37.4 37.0 Pipeline Rail 36.2 36.9 48.1 61.6 62.8 46.6 Road 413.2 435.5 470.0 502.2 511.3 523.0

Total 483.3 511.7 555.4 600.3 611.6 606.7Source:http://nats.sct.gob.mx/ir-a-las-tablas-2/tabla-5.1(MEX&USA)Table2-DomesticfreighttransportbymodeinUSA

DomesticfreighttransportbymodeinUSA(millionsmetrictons) 2000 2005 2010 2013 2014 2015 Air 21.9 23.0 4.3 4.1 Water 942.8 863.2 501.5 405.3 Pipeline 1,355.1 1,370.5 1,218.9 1,225.3 Rail 2,257.6 2,530.6 1,857.4 1,900.3 Road 3,454.5 3,475.2 2,671.3 3,175.5

Total 8,031.9 8,262.5 6,253.4 6,710.5 Source:http://nats.sct.gob.mx/ir-a-las-tablas-2/tabla-5.1(MEX&USA)Table3-DomesticfreighttrafficbymodeinMexico

2000 2005 2010 2013 2014 2015DomesticfreighttrafficbymodeinMexico(billionmetrict-kms) Air 0.1 0.1 0.1 0.1 0.1 0.1 Water 21.3 24.7 23.5 23.0 23.6 23.3 Pipeline Rail 25.7 29.7 36.3 42.8 43.3 30.5 Road 194.1 204.2 220.3 235.4 239.7 245.1

Total 241.2 258.7 280.2 301.3 306.7 299.0Source:http://nats.sct.gob.mx/ir-a-las-tablas-2/tabla-5.2(MEX&USA)

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Table4-DomesticfreighttransportbymodeinUSA

2000 2005 2010 2013 2014 2015

DomesticfreighttransportbymodeinUSA(millionsmetrictons) Air 21.9 23.0 4.3 4.1 Water 942.8 863.2 501.5 405.3 Pipeline 1,355.1 1,370.5 1,218.9 1,225.3 Rail 2,257.6 2,530.6 1,857.4 1,900.3 Road 3,454.5 3,475.2 2,671.3 3,175.5

Total 8,031.9 8,262.5 6,253.4 6,710.5 Source:http://nats.sct.gob.mx/ir-a-las-tablas-2/tabla-5.2(MEX&USA)

ImportandExportfreighttoUSAandCanada

Table5,andTable6showinternationaltradewithNAFTAcountriesandtheworldbymajorproductgroupin2014(exportsandimports,respectively).Over80%ofMexico’stotalexportswenttoNAFTAtradingpartners,whileimportscamefromabroaderspectrumofcountries(NAFTApartnerscontributedto51percentofimports).

Table5-EXPORTMerchandisetradeofMexicotoNAFTAcountriesandtheworldbymajorproductgroup,2014

World NAFTAExports(billionUSD) Value Share Value ShareMexico Agricultural 26 6.6 21 6.2Fuelsandmining 53 13.4 36 11.1Manufactures 309 77.8 266 80.6Totalexports 398 100 330 100

Source:WorldTradeOrganizationInternationalTradeStatistics2015

Table6-IMPORTMerchandisetradeofMexicofromNAFTAcountriesandtheworldbymajorproductgroup,2014

World NAFTAImports(billionUSD) Value Share Value ShareMexico Agricultural 31 7.5 24 11.5Fuelsandmining 44 10.6 34 16.2Manufactures 326 79.2 149 70.3Totalimports 412 100 212 100

Source:WorldTradeOrganizationInternationalTradeStatistics2015

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Table7showsthefiveprincipalportsofEntry/ExitwiththeUSAandCanadabymode.Indollarterms,theprincipalportsofRoadentryaccountfor65percentoftradethroughprincipalports.RailhandlesonethirdoftheRoadvalue(22percent),withSea,Pipeline,andAirwithmuchsmallerparticipation.

Table7-PrincipalportsofEntry/Exitforfreightto/fromNAFTAtradingpartners

Importsfrom: Exportsto:MillionsofUSD Canada USA Sum Canada USA SumAir CD.DEMEXICOD.F. 70 2,184 2,254 3,060 3,372 6,432GUADALAJARAJAL. 326 3,222 3,548 1,270 1,430 2,700MONTERREYN.L. 24 585 609 266 287 553PROGRESOYUC. 41 688 729 627 646 1,273TOLUCAMEX. 57 564 621 412 474 886Sea ALTAMIRATAMPS. 18 1,137 1,155 2,625 2,660 5,285CD.DELCARMENCAMP. 6,086 6,086 53 53 106COATZACOALCOSVER. 88 2,404 2,492 5,633 5,642 11,275TUXPANVER. 2 2 5,652 5,688 11,340VERACRUZVER. 88 4,830 4,918 2,660 3,064 5,724Road CD.JUAREZCHIH. 386 44,462 44,848 17,923 18,405 36,328CD.REYNOSATAMPS. 208 19,685 19,893 7,928 8,273 16,201COLOMBIAN.L. 1,148 21,870 23,018 9,354 9,849 19,203NUEVOLAREDOTAMPS. 2,447 72,730 75,177 54,159 57,607 111,766TIJUANAB.C. 641 30,206 30,847 12,255 12,610 24,865Rail CD.JUAREZCHIH. 384 7,229 7,613 2,267 2,524 10,138MATAMOROSTAMPS. 14 320 334 630 631 967NOGALESSON. 3 6,519 6,522 1,990 2,083 8,606NUEVOLAREDOTAMPS. 3,324 18,915 22,239 16,281 17,627 39,867PIEDRASNEGRASCOAH. 497 15,536 16,033 6,619 7,202 23,236Pipeline CD.CAMARGOTAMPS. 0 846 846 1,692CD.JUAREZCHIH. 16 16 1,686 1,687 3,373CD.REYNOSATAMPS. 216 216 677 677 1,354MATAMOROSTAMPS. 11 11 1,144 1,144 2,288MEXICALIB.C. 246 246 406 406 812

Sourcehttp://nats.sct.gob.mx/ir-a-las-tablas-2/tabla-6-

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TransportInfrastructureinMexico

Table8showstheextensionoftheinfrastructureforeachmode.

Table8-TransportInfrastructureinMexico

2000 2005 2010 201510yrCAGR

RoadNetwork 000kms 323.1 355.8 371.9 390.3 0.9%Paved 000kms 108.5 122.7 138.4 156.8 2.5%Highways 000kms 101.8 111.9 122.4 156.8 3.4%

Highways<4lane 000kms 91.6 100.7 109.8 141.5 3.5%Highways>=4lane 000kms 10.2 11.2 12.6 15.3 3.1%

.. .. .. ..

Unpaved 000kms 214.6 233.1 233.5 233.5 0.0

Pipeline 000kms 16.4 25.5 26.5 29.3 1.4%Gas 000kms 7.5 16.3 16.6 17.8 0.9%Oil 000kms 8.9 9.1 10.0 11.4 2.3%

Rail 000kms 26.7 26.7 26.7 26.8 0.1%Urbanrail 000kms 0.3 0.3 0.3 0.3 1.0%

Airports number 1,215 1,485 1,465 1,489 0.0% Ports number 108 113 116 117 0.3%

Source:http://nats.sct.gob.mx/ir-a-las-tablas-2/tabla-11-infraestructura-para-el-transporte10yearCAGR=combinedaverageannualgrowthratefrom2005to2015

RoadSystem

Giventheimportanceofon-roadfreighttotheeconomy,investmenthasbeenmadeintheroadsystem(seeFigure5).Overthelastdecadehighwayextensionhasincreasedatacombined10-yearaverageannualgrowthratebetween3.1and3.5percentwithasurgein2015(seeTable8,Figure6).Overthelast10years,othermodeshavenotexhibitedsignificantgrowth.

AccordingtotheMinistryofCommunicationsandTransport(SCT),MexicoinvestedmorethanUS$2.05billionininfrastructureinthefirsthalfof2015.Thecurrentgovernmenthasbuilt17motorways

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(equivalenttoaninvestmentofUS$3.975billion),andestimatesthat35morearerequired(equivalenttoapproximatelyUS$7.2billion)7.

Despiteinvestimentinroadcapacity,Mexicoranks52ndinroadqualitycompetitivenessamong140nations.Whilstthecountryisbuildingnewroads,maintenanceofexistingroadsisbelowexpectationwhichlimitstheefficiencyofthissector8.

Source:http://geo-mexico.com/?p=10053

Figure5-PrincipalHighwaysinMexico

7Source:https://www.forbes.com.mx/mexico-invirtio-mas-de-33000-mdp-en-infraestructura-carretera8Sources:WorldEconomicForumCompetitivenessrankings2014-2015http://reports.weforum.organdhttp://www.elfinanciero.com.mx/empresas/se-estanca-calidad-de-carreteras-en-mexico-pese-a-mayor-inversion.html

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Source:http://nats.sct.gob.mx/ir-a-las-tablas-2/tabla-11-infraestructura-para-el-transporte

Figure6-HighwaysystemlengthinMexico

RailSystem

MexicohasnothadanextensiverailsystemasseenintheUnitedStatesortheEuropeanUnion.Therailwayinfrastructureconsistsof26,727kilometersoftrack,ofwhich20,722arepartofthetrunkroutesandtheirbranches,andaremostlyconcessional.Oftheremainder,4,450kilometersaresecondaryroutesand1,555kilometersareprivate.

Railcompetesfavorablyonhigh-volume,low-valueshipmentssuchascornorcementandwherespecificmarketsegmentsareservedonspecificroutes,suchastheautomotivetrains.Thetractor-trailerisseenbytransportcompaniesasthebetter-connected,moreflexibleoption.SCT,3PLcompanies,andmanyothersagreethatiftherecouldbesignificantinvestmentsinRailtransport,thesystemwouldbecomplementarytothecurrenthighwaysysteminmulti-modaloperation,reducingcostsandemissionsfromthelonger-haullinksbutusingon-roadfreightforfirstandlastmileconnectionsfromsuppliersandtothefinaldestination.Thiswouldinvolvemuchimprovementintheefficiencyoftherail-roadfreightinterconnectionsespeciallyfavoringmovementsabove400-500km.

AccordingtotheNationalInfrastructureProgram(PNI)2014-2018,railwayserviceinMexicohasimprovedsignificantlyintermsofmanagement,rollingstock,capitalandlaborproductivity,aswellastheincreaseoftrafficlevelsandmarketshares.Theprogramproposesstrengtheningandexpandingtheserviceinsomeurbanareastoincreaseinfrastructurecapacityandmobility.Inaddition,existingconnectionsoftherailnetworkoftheIntegralPortAdministrationsoffreightcanbeimprovedtofacilitateandincreasecontainertraffic.AnobjectiveofthePNIistoincreasefreighttrainspeedsandexpandrailwayinfrastructuretohavesufficientspaceforloadingandunloadingRailfreight.

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IncludedinthisprogramistheconstructionoftheCelayarailbypass,includinga19.4kmpatioforrail-roadfreightinterconnectionandtheshortsectionoftheAguascalientes-Guadalajararailroad,theManzanillo-TampicoandManzanillo-NuevoLaredorailcorridors.Thelatterwillhavealengthof188.1kilometers,becomingakeyplayerinfreightmovementsbetweentheGulfandthePacificandtotheUnitedStates.

Likewise,itisenvisagedintheNIPthemodernizationoftheChiapas-Mayabrailroad,TheCoatzacoalcoscorridorandtheuseoftheTranspeninsularTrain.

Figure7-RailinfrastructureinMexico

Themainrailroadcompanies:FerrocarrildeMéxico(Ferromex)andKansasCitySouthernofMexico(KCSM)areexpectedtoinvestaboutUSD3billionby2020tomeetthenewdemandforrailfreight.Thesewerethelargestbudgetsforthesefirmssincetheprivatizationofthenationalrailsystemoversimilartimeperiods,drivenbytheexpectedgrowthoftheenergysector(duetothereform)andtheimpetusthatwastobegiventotradebythethen-proposedTranspacificAssociationAgreement(TPP)9.

9ElFinanciero11March,2017(http://www.elfinanciero.com.mx/empresas/ferromex-y-kcsm-invertiran-en-mexico-mil-mdd-al-2020.html)

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Theinvestmentswillbeusedtoexpandthetractionofthelocomotivefleet,aswellasintherenovationoftracksandtrains.

Despitetheseinvestments,mostfreightcompaniesintervieweddonotseeRailascompetingwithtractor-trailertrucksinMexico.ThelevelofRailinfrastructureinvestmenttobeabletocompetewithhighway,forgeneralfreight,wouldbeexpensiveandpoliticallycomplexduetotheconcessionsysteminplace.

Multimodalfreight

FreightterminalsinMexicomustbeauthorizedbytheMinistryofCommunicationsandTransport(SCT)andinadditiontoallowingtheloadingandunloadingoffreightbetweentherailwayandon-roadtransport,canprovideservicessuchasreception,storage,classification,consolidation,anddispatchoffreight.

In2015,therewere59railfreightterminalsoperatingwithpermits,mainlyinthestatesofNuevoLeón(25%),StateofMexico(15%),Jalisco(10%)Querétaro(10%),Hidalgo(8%)andS.L.P.(8%).

MultimodaltransportisconsideredanareaofopportunityinnationallogisticstoboostMexico'sdevelopment.Bothforthedomesticmarketandexports,manymultimodaltriplengthsaregreaterthan400-500kilometers,abovewhichRail,ifproperlyexploited,cangeneratebothcostandemissionssavings10.

Pipelines

InDecember2013,Mexico’senergyreformopenedtheenergyindustrytovariousdegreesofprivateparticipationandcompetition.ThishasnotledtoanincreaseinnationalgasproductionbecausemorethanhalfofMexico’snaturalgasproductionisassociatedgasfromoilandislocatedatthesouthernendofthecountry.Domesticgassupplyhasdeclinedbynearly0.9billioncubicfeetperday(Bcf/d)since2010to4.1Bcf/din2015asoilproductionlagged,butatthesametime,demandforgaspickedup,mostlyfromthepowersector,inwhich1,990MWofnewcombinedcyclenaturalgaspowerplantswillbeinstalled,andpipelineimportsfromtheU.S.havebeenutilizedtobalancethemarket.

Tomeetthisdemand,newpipelinesarebeingbuilt(seeTable9),andexistingpipelinesarebeingexpandedorhavingtheirflowcapabilityreversed.GasimportsfromtheU.S.accountedforonly8%ofMexicangasdemandin2000.By2010,U.S.gasimportsasapercentageoftotaldemandclimbedto14%.In2016pipelineimportssurgedtoaround44%andareexpectedtoaccountforhalf,ifnotmore,oftotaldemandin2017andbeyond.Bytheendof2017,twelvenewnaturalgaspipelinesareexpected

10Source:PNIandElEconomista29April2014(http://eleconomista.com.mx/industrias/2014/04/29/transporte-multimodal-impulsara-desarrollo-mexico)

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tobeplacedinservice,facilitatingnaturalgasexportgrowthfromtheUSAtoMexicoandprovidingincreasedinterconnectivityfortheMexicannaturalgasgrid.

TheexpansionsplannedfortheMexicanpipelinegridareintendedtoprovidealong-termfoundationforincreasednaturalgasburn,withimportsgraduallyincreasingasprojectsarecompleted.

Table9-ConstructionofnewpipelinesinMexicoupto2017Year New

Pipelines(km)

TotalExtension(km)

2010 11,5422011 300 2013 625 2014 365 2016 1,944 2017 1,021 15,797

Source:InsightsofTransportation&LogisticsSectorinMexico,PWC,Sept2014(https://www.pwc.com/mx/es/knowledge-center/archivo/2014-09-transportation-and-logistics.pdf)

Figure8-Mexicanpipelineinfrastructure

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TransportActivitybymodesotherthanRoad

FreighttransportedbyRail

In2015,freighttransportbyRail(seeFigure9)increasedby2.3percentcomparedto2014,recordingamovementof119.6millionnettons.Likewise,therewasa3.4percentincreaseinton-kilometerstransported,risingto83.4billiont-kmin2015.Similarly,Railtrafficofimportcargoamountedto54.9milliontonsin2015;anincreaseof32.9percentoverthepreviousyear.ThemainproductstransportedbyRail(seeFigure10andTable10)arecorn(11.8percent),cement(8.3percent),containers(7.5percent)andironandsteelsheetsandplates(6.3percent).

Source:ANUARIOESTADÍSTICOFERROVIARIO2015DireccióngeneraldeTransporteFerroviarioyMultimodal

Figure9-FreighttransportedbyRailinMexico

010,00020,00030,00040,00050,00060,00070,00080,00090,000

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Figure10-PrincipalproductstransportedbyRail

Table10-PrincipalproductstransportedbyRailinMexico

Tons('000) %Corn 14,062 11.80%Cement 9,873 8.30%Containers 8,930 7.50%SteelSheet 7,878 6.60%IronOre 7,844 6.60%Vehicles(complete) 4,795 4.00%Wheat 4,523 3.80%SoyaBeans 3,573 3.00%Coal 2,949 2.50%Steelforconstruction 2,563 2.10%FeedforAnimals 2,317 1.90%Iron/Steelscrap 2,170 1.80%Beer 2,162 1.80%Oil 2,039 1.70%

Coke 1,972 1.60% Top15 77,650 65.00%Total 119,646


Corn

Cement

ContainersSteelSheet

IronOreVehicles

(complete)

Wheat

SoyaBeans

CoalSteelfor

construction

FeedforAnimals

Iron/SteelscrapBeerOil Coke PrincipalproductstransportedbyRail

Corn Cement ContainersSteelSheet IronOre Vehicles(complete)Wheat SoyaBeans CoalSteelforconstruction FeedforAnimals Iron/SteelscrapBeer Oil Coke

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RailEnergyEfficiency

OverthelastdecadestheenergyefficiencyofRailtransporthasimprovedtoitscurrent(2015)valueof118t-km/Lofdiesel(Table11andFigure11).ThisisequivalenttothefreightrailfuelefficiencyintheUSAin1985.In2015theUSAFreightRailFuelEfficiencywas201t-km/L(473ton-milesperUSgallon11).WhilstsomelocomotivesandrailcarsmaybesimilartothoseusedintheUSA,trackandsignalingsystemlimitations,togetherwithtopographyandoperatingpracticescombinetolimitspecificfueleconomy.IntheUSA,theexceptionallylongaveragelengthofhaulwithunittrainsof50ormorewagonsdedicatedtoasinglecommodityandshipperallowthetrainstomovethroughtherailnetworkwithaminimumofswitchingmakingtransittimeslower,morereliableandmorefuelefficient12.

Table11-FreighttransportedbyRailandfuelefficiencyinMexico

2000 2005 2010 2015

FreightTransported Ton(million) 77 90 105 120

FreightTraffic t-km(million) 54,776 72,185 78,770 83,401

Fuelconsumedbyfreighttrains Litres(million) 617 642 678 709

FuelEconomy t-km/L 89 112 116 118Source:ANUARIOESTADÍSTICOFERROVIARIO2015DireccióngeneraldeTransporteFerroviarioyMultimodal

11SourceAssociationofAmericanRailroads(https://www.aar.org/BackgroundPapers/Environmental%20Benefits%20of%20Moving%20Freight%20by%20Rail.pdf)12Sources:FreightRailwayDevelopmentinMexico,InternationalTransportForumOECD,2012andEffectsofNorthAmericanFreeTradeAgreementonAgricultureandtheRuralEconomy,SteveZahniserandJohnLink.USDAWRS-02-1July2002

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Figure11-FuelefficiencyofRailfreightserviceinMexico

Principalportsbytonnage(nationalandInternational)2015

Forwaterbornefreight,domesticcoastalshippingaccountedfor26percentoftotaltonnagewiththeremainderbeinginternational(export/import)trade(seeTable12).ThemoststrategicportsforcommercialcargoareAltamira,Veracruz,Manzanillo,andLázaroCárdenas,whichtogetheraccountfor95percentofthecontainerizedcargo,59percentoftheagriculturalbulkfreight,34percentofthebulkmineralsand40percentoftheloosegeneralcargo13.Theseportsarereachingtheircapacity14anddemandnewinvestments.Thereare182shippinglinesoperatinginMexicanportsandaround15percentoftotalcargoiscontainerized.

13CayosArcasisanoff-shoreoilterminal.TheArcasoilrigsarecurrentlyamongthelargestoilproducersinthegulfintermsofoutput.Coatzacoalcosisdominatedbythepetrochemicalsector.Fourbigindustrialpetrochemicalcomplexesarelocatednearthecity(Pajaritos,Cosoleacaque,MorelosandCangrejera)makingitoneofthemostimportantconcentrationsofitskindintheworld.

14CoordinaciónGeneraldePuertosyMarinaMercante,EstadísticamensualdeMovimientoPortuario2014.

80859095

100105110115120125130

FuelEcono

my(ton-km

/L)

Year

FuelefficiencyofrailfreightserviceinMexico

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Table12-PrincipalportsbyfreighttonnageinMexico

thousandsofmetrictons

Port Total National International Containersas%oftotal

CayoArcasCampeche 41335 NS 41335 NAManzanilloColima 28496 4154 24343 63LázaroCárdenasMichoacán 28189 7256 20934 25CoatzacoalcosVeracruz 28111 5289 22822 NSVeracruz 21210 1411 19799 40AltamiraTamaulipas 17314 11 17304 31IsladeCedrosBajaCalifornia 17103 8125 8978 NASalinaCruzOaxaca 13464 8315 5149 NSTuxpanVeracruz 12427 1591 10837 NSPuntaVenadoQuintanaRoo 10842 991 9851 NADosBocasTabasco 10351 2962 7389 NSGuerreroNegroBajaCaliforniaSur 8221 8213 8 NAGuaymasSonora 7831 4116 3714 1TampicoTamaulipas 6785 2415 4370 NSTopolobampoSinaloa 5939 3746 2193 NAProgresoYucatán 4252 1944 2308 10CuyutlánColima 3481 NS 3481 NAMazatlánSinaloa 3263 2368 895 12RosaritoBajaCalifornia 2604 1425 1179 NAEnsenadaBajaCalifornia 2320 578 1742 37Subtotal-20mainports 273539 64909 208630 15Totalallports 286549 74713 211837 NA20mainports:%oftotal 95 87 98 14

Source:http://nats.sct.gob.mx/ir-a-las-tablas-2/tabla-11Note:N/Anotapplicable,N/Snotsignificant

AirOperations

Airfreight,asintherestoftheworld,istypicallydedicatedtohigh-value,highly-perishable,time-sensitive,cargoandAirtonnagepalesincomparisontoothermodes(representingonly387thousandtonsin2015).However,itsspecificvalueismuchhigherthanothermodesascanbeseeninTable13.

96percentoftheairfreightinMexicoisconcentratedin10stateswithMexicoCity(DistritoFederal)beingthemostimportantanddoublethatofJaliscowhichisinsecondplace.MexicoCity,Guadalajara,Monterrey,andLaredotogetheraccountfor79percentofairfreight.TheprincipalroutesforairfreightinMexicobystateareshowninFigure12andTable14respectively.

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Table13-YearlyTradeRatiosofValuetoWeightbetweenUSA-MEXICO(importvaluetotheUSAincurrentU.S.dollarsandimportweightinKg)

YearlyTradeRatiosofValuetoWeightbetweenUSA-MEXICO(importvaluetotheUSAincurrentU.S.dollarsandimportweightinKg) 2010 2011 2012 2013 2014 2015 2016 Air 159.68 168.86 159.96 132.26 133.09 132.63 131.9Water 0.49 0.66 0.68 0.63 0.6 0.38 0.35Pipeline 0.49 0.53 0.49 0.51 0.38 0.34 0.31Rail 3.04 3.15 3.77 3.73 3.6 3.72 3.74Truck 4.97 5.2 5.42 5.38 5.43 5.74 5.28

SOURCE:U.S.DepartmentofTransportation,BureauofTransportationStatistics,TransBorderFreightData.

Sourcewww.air7seas.com/

Figure12-PrincipalAirfreightroutes

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Table14-PrincipalstatesforAirfreightinMexico

Flights(passenger+freight) Freight(thousandtons) Scheduled Charter Total Scheduled Charter Total DistritoFederal/MexicoCity 203,339 1,354 204,693 189.9 7.6 197.6Jalisco 69,410 1,657 71,067 80.2 5.9 86.1NuevoLeón 50,119 1,196 51,315 17.0 4.9 21.9SanLuisPotosí 6,294 231 6,525 12.3 1.0 13.4Yucatán 10,192 670 10,862 9.4 1.6 11.1BajaCalifornia 28,104 403 28,507 9.5 0.9 10.4EstadodeMéxico 5,716 195 5,911 8.5 0.2 8.6QuintanaRoo 73,608 3,137 76,745 7.5 0.5 8.1Querétaro 5,374 1,497 6,871 0.0 7.4 7.5Sonora 12,434 806 13,240 2.6 3.0 5.6 Totaltop10 475,736 337.0 33.2 370.2TotalNational 638,376 387.6 Top10as%oftotal 74.5% 95.5%

Source:SCT,SST,DGAC,DDE.Informationprovidedbyaircarriers

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Chapter3:-CharacteristicsofIn-useTractor-trailersinMexico

Thischaptercompilesinformationontheregistered,andactivein-usepopulationofhighwaytractorsandsemi-trailersinMexico.Itpresentsdatabysizeoffleetandbyvocation,andlooksattheexpectedlifeoftheseunits.

PopulationofIn-useHighwayTractorsThenationalpopulationofregisteredhighwaytractorsattheendof2016is284,349unitswhichhasgrownatanaveragerateof4.6percentperyearoverthelast10years.Thesenumbersgiveanin-usefleetaverageageof15.1yearswith30.3percentofthepopulationwithover20yearsofuse(thatismodelyear1995orearlier).However,theactivepopulationofhighwaytractorsasgivenbytheMacKayseriesofsurveysisaround70percentofthisfigure,upfrom64percentinthe‘90s.Theaverageageofthisactivefleetis8.5yearstobecomparedtotheaverageageofaheavy-dutyvehicleintheUSof9.4years.ItistobeexpectedthattheMexicanfleetisyoungerbecauseofthedifferenceinannualgrowthrate.Mostoftheremaining30percentofover20-year-oldvehiclesdoexist,butnotinnormalmain-linefleetoperation.Theprincipalvocationsoftheactivein-usefleetare“ForHire”61percentand“Industry&Commerce”26percentwithalmost70percentofthesevehiclesreportedbyfleetsofover100vehicles.Attheendofthe‘90s,IndustryandCommerceaccountedforonly11percentofhighwaytractors(withasignificantlyhigherpenetrationinrigidtrucks).Thishasgrownto26percent(in2015)andisnowdroppingagainwithincreasingusageof3PLlogisticscompaniestomanagetheirtransportneeds.Overthecoming24months,“Forhire”expectsanetincreaseof3percentinhighwaytractorsand2percentinsemi-trailerswhilst“IndustryandCommerce”arelookingataconsiderablereductioninbothof33and22percentrespectivelycausedbyapowerfulshifttowardstheuseof3PLlogisticscompanies.Onemainadvantageoftheseisthattheyareexemptfromthelimitationonprivatefleetsthathaveanyforeigninvestmentoftransportingonlythosegoodsthataredirectlyrelatedtotheirbusinessneeds,andalsohaveloweroperatingcoststhan“IndustryandCommerce”fleets.Inthemostrecentsurvey,overhalfoftheHighwayTractorsfoundinthesampleareKenworth,withFreightlinerinsecondplacewith31percent.Itisinterestingtonotethatforbothbrandsthemostrecentmodelyearsshowedthehighestpenetrations;36percentofallFreightlinersinthesamplewereof2015ornewermodelyear(comparedthe28percentofKenworth)

ChapterHighlights

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Populationofsemi-trailersThenationalpopulationofregisteredsemi-trailersattheendof2016is417,000unitswhichhasgrownatanaveragerateof6.6percentperyearoverthelast10years.Thisgivesanoverallratioofsemi-trailersperhighwaytractorthatincreasesfrom1.20in2005to1.47in2016.Byvocation,Owner/operatorhavearatioof1.17;“Forhire”transportfleets,1.46;andIndustry&Commerce2.01.TheTop100fleetsbysize(independentofvocation)givearatioof1.98semi-trailersperhighwaytractor.Asapointofreference,intheUSAsince2005,theratioofdryvanstoClass8tractorshasremainedinaverytightband:1.96to2.01trailerspertractor.Whilstfleetstendtocarefullychoosetheirtractorsbymake,trailersareconsideredmoreofacommoditywherepriceisthemaindifferencingfactor.Aswithhighwaytractors,thereisadifferenceforsemi-trailersbetweenthetotalnumberregisteredandthosefoundinfleetactiveservice.WhilsttheSCTregisterednumberswouldgiveanaverageageof16.1years,theactivefleethasanaverageageof6.9years.Inthemostrecentsurvey25makesofsemi-trailerwerementionedbytheinterviewees,ofthese,threemakesaccountforalmost55percentofthesample—Utility,Fruehauf,andGallegos.VehiclepopulationbyremaininglifeHighwaytractorsThetimethatthefleetexpectstokeepthevehicleinoperationbeforesellingit,variessubstantiallybyvocation.Industryandcommerceexpecttousetheirvehiclesofmodelyear2013orneweranadditional8years.Thislifeexpectancedropstooneyearforvehiclesthatare20yearsold.For“ForHire”transportfleetsthestoryismorecomplex.Newvehiclesthataretypicallyboughtbythelargerfleetshavealifeexpectancy(withtheirfirstbuyer)oflessthan12years.These(togetherwithprivatefleetvehicles)arethenresoldtosmallerfleetsandresoldagainuntiltheyendupinthehandsofowner-operatorsandsmallfleets.Becauseofthis,aftertheunithashad25yearsofoperation,itsexpectedlifereachesanewpeakofanadditional12years.Noneofthefleetsinthesamplehadvehiclesolderthan1984modelyear.Semi-trailersIndustryandcommerceexpecttousetheirsemi-trailersofmodelyear2015orneweranadditional10years.Thislifeexpectancedropstotwoyearsforunitsthatareofmodelyear2004orolder.Inthesample,Industryandcommercedidnothaveanysemi-trailersofover20yearsofage.

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HighwayTractors

Registeredpopulation

ThemostcitedvehiclepopulationfiguresarereportedbySCTintheirannualstatisticalreport(EstadisticaBásicadelAutotransporteFederal).

Themostrecentversion(2016)showsanationalpopulationofregisteredhighwaytractors(2and3axleversionsshownasT2&T3)attheendof2016of284,349unitswhichhasgrownatanaveragerateof4.6percentperyearoverthelast10years.

Source:SCTEstadísticaBásicadelAutotransporteFederal-2016

Figure13--RegisteredParcofHighwayTractors(2016)SCTdata

0

50,000

100,000

150,000

200,000

250,000

300,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

ParcHighwayTractorsT2&T3(SCTdata)

For“ForHire”transportfleetsthestoryismorecomplex.Newsemi-trailersthataretypicallyboughtbythelargerfleetsandhavealifeexpectancy(withtheirfirstbuyer)of15years.However,astheygetresoldtosmallerfleetstheirlifeextendsconsiderably.Eventhoseunitsinthesampleof1984modelyear(33yearsold)wereexpectedbytheirownerstohaveanadditional10yearsofuseinthem.Alargenumberoftheinterviewees,hadaclearideaoftheexpectedlifeoftheirhighwaytractorsbutwhenaskedasimilarquestiononsemi-trailersanswered,“Forthelifeoftheunit”withouthavingaclearexpectationofhowlongthatmaybe.

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Basedonthe2016population,6statesaccountforoverhalfofthetotalpopulation(seeTable15).ThecompletedistributionbystateisshowninFigure15.

Table15StateswithmostregisteredHighwayTractors(2016)

State %

CiudaddeMéxico 17%

NuevoLeón 13%

Jalisco 7%

Tamaulipas 6%

Guanajuato 6%

EstadodeMéxico 5% Source:SCTEstadísticaBásicadelAutotransporteFederal-2016

Thedistributionofthesevehicles,in2016,bymodelyearisshowninFigure14whereitcanbeseenhowtheextremevolatilityofheavydutyvehiclesales(drivenbyeconomicactivity)affectthein-usepopulation.

Thesenumbersgiveanin-usefleetaverageageof15.1yearswith30.3percentofthepopulationwithover20yearsofuse(thatismodelyear1995orearlier).


Figure14-CompositionoftheParcofhighwayTractorsin2016bymodelyear

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

ParcHighwayTractorsT2&T3bymodelyearin2016(SCTData)

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Figure15-PopulationofhighwayTractors(T2&T3)bystatein2016(SCTdata)

ActivepopulationofHighwayTractors

Theregisteredpopulationofvehiclestakenfromtheemissionoflicenseplatesmaygivevalidnumbersforthetotalparcinexistence,butcannotdevelopinformationonthosethatarereallyinactiveuse.Forthis,otherdatasourcesareneeded.

1.6% 3.4%

0.2% 0.2% 0.6%

3.8% 17.1%

3.7% 0.8%

1.9% 5.1% 5.7%

0.4% 3.9%

7.0% 3.0%

0.7% 0.2%

13.0% 0.4%

3.1% 3.1%

0.2% 2.5%

2.2% 2.7%

0.7% 6.1%

0.6% 4.7%

0.8% 0.5%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0%

AguascalientesBajaCalifornia

BajaCaliforniaSurCampeche

ChiapasChihuahua

CiudaddeMéxicoCoahuilaColima

DurangoEstadodeMéxico

GuanajuatoGuerreroHidalgoJalisco

MichoacánMorelosNayarit

NuevoLeónOaxacaPuebla

QuerétaroQuintanaRooSanLuisPotosí

SinaloaSonoraTabasco

TamaulipasTlaxcalaVeracruzYucatán

Zacatecas

ParcHighwayTractorsT2&T3(2016)byState

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TSTEShasconductedadetailedstudyoftheheavy-dutyfleetutilization(includingClass8highwaytractorsandtrailers)andrepairpracticesinMexicoeveryfouryearssince1992forMackay&Company,Lombard,Illinoiswhoprovideittoheavydutyvehiclemanufacturersandcomponentsuppliers.Thisseriesofstudiesisdescribedinmoredetailintheannextothisreport15.Eachstudyhasbeenconductedonaclean-slate,stand-alonebasisandhasconsistentlygivenactivepopulationsthatarelowerthanSCT’snumberofregisteredvehicles.Inthe90’sforhighwaytractorstheactivefleetwasaround64percentoftheregisteredfleetandthisnumberhasslowlyincreasedoverthese25yearsto70percentin2015.Thepopulationnumbershavebeensharedwithalltheprincipalvehicleandcomponentmanufacturersandendorsedbythemasbeingrepresentativeoftherealin-usefleetandusedbythemtodeterminetheirreplacementpartsmarketsizeprojections.

Themostrecentstudywas2015.MacKayispermittingustosharethevehiclefleetdatafromthisstudywithyouprovidedthatitisreferenced(cited)toMackay&Co.16Theuseofthesefindingsisimportantbecausetheyrepresenttheprincipalpeer-reviewedstudythatclearlyidentifiestheactualactivein-usevehiclefleet,ascomparedtothelicenseplatestatisticscollatedbySCTofregisteredheavydutyvehicles.

Thisstudygives(in2015)anactivepopulationofhighwaytractorsof186,000ascomparedtoSCT’sregistrationdataof265,000.ThebreakdownoftheactivepopulationbyvocationandfleetsizeisshowninTable16andthecomparisonbetweenthetwonumbersinTable17.NotethatthefleetsizesshownareforthenumberofmotorizedClass6,7,and8goodsvehiclesinthefleet(rigidtrucksandhighwaytractors).Thenumberoftrailersandsemi-trailersthateachfleetowns/usesisnotincluded.

Table16--ActiveparcofHighwayTractorsin2015(MacKaystudy)

NumberofHighwayTractorsperVehicleFleetinMexico-April,2015 Vocation FleetSize 1–20 21–50 51–100 101–300 >300 TotalOwner/Operator 5,230 0 0 0 0 5,230ForHire 2,084 7,039 12,882 32,190 59,579 113,775Industry&Commerce 1,749 4,846 11,913 15,648 15,254 49,410Construction&Mining 2,241 1,025 1,582 2,635 1,616 9,100Agriculture 1,283 1,331 2,651 1,744 0 7,010Government 412 1,003 95 159 72 1,741 Total 12,999 15,245 29,124 52,377 76,521 186,266

Source:Mackay&Company,Lombard,Illinois–DataMac-Mexico2015

15Togetherwiththedistributionofeachsamplebyfleetsize16PleaseciteasSource:Mackay&Company,Lombard,Illinois–DataMac-Mexico2015

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Table17-Comparisonofregisteredvsin-usehighwaytractorsin2015

2015 FractionSCTRegisteredHighwayTractors 264,798 ActiveIn-UseHighwayTractors 186,266 70.3%

Whentheactivein-usefleetdatafromtheMacKaystudyiscomparedtothevehicleregistrationdatafromSCTitisseenthatthisaccountsfor70percentoftheregisteredfleet(seeTable17).

Figure16showshowthesetwonumbers(registeredvsactive,in-use)compareonamodel-yearbasisanditcanbeseenthatthedifferenceliesintheoldervehicles.30.8percentoftheregisteredhighwaytractorsareover20yearsold(thatismodelyear1994orearlier)andthesearenotprimarilybeingusedbyfleets.TheinterestingexceptioncanbeseenwheretheMacKaynumbersforvehiclesbetween4and11yearsarehigherthantheSCTregistrationnumbers.Inthisagebracket,wehaveananomalyof11,025vehicleswhichareoldertrucksthathavebeencompletelyrebuiltusingimportedsecondhandvehiclesfromtheUSAbutkeepingataminimumtheoriginalframerailssothattheycanusetheMexicanregistration.Oneexamplewasa1953Kenworththattoallintentsandpurposeswasa2007modelyearunit.Inoursurvey,theownerreporteditas2007whichwasconsistenttoitstechnicalspecificationalthoughitsregistrationdocumentsshowedamucholdervehicle.

HighwayTractorpopulationbyage

Source:Author’sanalysisbasedonMackay&Company,Lombard,Illinois–DataMac-Mexico2015andSCTEstadísticaBásica

delAutotransporteFederal-2015Figure16-Comparisonofin-usevehiclenumbersfromtheMacKaystudy(2015)vsSCTregistrationdata

0

10000

20000

30000

40000

50000

60000

over2521- 2516- 2012 - 15 8 - 11 4 - 7 0 - 3 Years

In-useHighwayTractors(2015)byageMacKayvsSCT

MacKay SCT

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Mostoftheremaining30percentofover20-year-oldvehiclesdoexist,butnotinnormalintensivefleetoperation.Thispopulationwillbediscussedbelowandhasbeencoveredbyaseparatesurvey.

Table18showsthedistributionofthisactivefleetbyageofvehicle.Thisincludesthe11,000vehiclesmentionedaboveattheageoftheirtechnicalspecification.Theaverageageofthisfleetis8.5years.IntheUnitedStates,theaverageageofaheavy-dutyvehicleis9.4years.ItistobeexpectedthattheMexicanfleetisyoungerbecauseofthedifferenceinannualgrowthrate.

Table18-PopulationofHighwayTractorsinactivefleetusageAge(yrs) Parc %over25 137 0%21-25 5626 3%16-20 17295 9%12-15 28051 15%8-11 51709 28%4-7 36956 20%0-3 46491 25% Total 186266 100%


Definitionofthevocations

Heavydutygoodsvehiclesareusedintwobroadvocationalcategoriesthatcanbefurthersubdivided:

• ForHire–Fleetsthattransportmerchandizeofothercompanies17o Owner-operator-of1to5units.Oftenconsideredasaseparatecategory(see

below).o Smallfleets–6to30unitso Mediumfleets–31to100unitso Largefleets–over100units

• Privatefleet–Fleetsthattransportmerchandizeofthesamecompanyo Industry&Commerceo Construction&Miningo Agricultureo Government

17ThissubdivisionistakenfromSCT

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Owner-operators

Owner-operatorsarethosepeoplethatownandoperatetheirowntruckingbusiness.Theyarefreetoeitherhaulfreelance(non-committaltoanyonefirmorproduct),orenterintoaleaseagreementtodedicatetheirequipmenttoonecustomerorproduct.Thereareapproximately350,000owner-operatorsregisteredintheUnitedStatesand114,308registeredforfreightinMexico18.

IntheUSA,ifanowner-operatoroperatesundertheirownauthoritytheywillhaveaDepartmentofTransportation(DOT)andMotorCarrier(MC)numberidentifyingthemasaregisteredcarrier.However,mostleaseontolargercarriersandoperateunderthatcarriersDOTnumber.Ontheotherhand,ProfessionalEmployeeDrivers(PEDs)donotownoroperatetheirowntruckandtrailer,nordotheyhaveaDOTorMCnumber.Instead,theyworkdirectlyforacarrierasanemployee.

IntheUSA,owner-operatorsdifferfromPEDsinthattheytypically19:• Arebettereducated(with45percenthavingcollegeeducation)• Haveahigherincome(netaverageincomeover$50,000vs$38,000to40,000foraPED• Aremostlikelytoownpremiumvehicles(PeterbuiltorKenworth)oftenoutfittedwith

accessories• Aremostlikelytohavehigherpoweredengines(69percentwith450BHPormore)• Haveasubstantialinvestmentintheirvehicles(with66percentfullypaidoff)• Areawayfromhomea100+nightsayearwith41%spendingoveratleast200nights

awayfromhome• Typicallyoperatefulltruck-loadshipments

InMexico,owner-operatorsalsooperateundertheirownauthority.However,theytypicallydonothaveaccesstofinanceandlackthispremiumstatus.

InMexico,owner-operatorstypically:• Operateonacash-flowbasiswithlittleornofinancialplanning• Donothaveacollegeeducation• Ownanduse20yearorolderhighwaytractorsandtrailerswhichtheyboughtsecond

hand• Areaffiliatedtootherowner-operatorsintoalooseknitfleetforcommercialpurposes.• Operateonlessattractiveroutesandfeederoperationswherelargerfleetsdonot

participateorcompeteasmuch.• Oftenoperateonlessthantruckloadbasis.• Oftenoperatewithintheinformalsector.

18Source:SCTESTADÍSTICABÁSICADELAUTOTRANSPORTEFEDERAL201619Source:OOIDAFoundation(seehttp://www.ooida.com/OOIDA%20Foundation/RecentResearch/OOfacts.asp)

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HighwayTractorpopulationbyvocation

Figure17showsthedistributionofhighwaytractorsbyvocationin2015fromthisstudy.NotethatasopposedtotheUSA,theOwner-operatorcategoryissmall(3percent)whichaddedtotheForHirecategoryaccountsfor64percentofthein-usefleet.IndustryandCommerceaccountfor26percentofthistotalwiththerest(10percent)distributedamongsttheremainingcategories.

Attheendofthe‘90s,IndustryandCommerceaccountedforonly11percentofhighwaytractors—withasignificantlyhigherpenetrationinrigidtrucks.


Figure17-ParcHighwayTractors(2015)byvocation(MacKaystudy)

HighwayTractorpopulationbyfleetsize

InFigure18itcanbeseenthatalmost70percentofthevehiclesarereportedbyfleetsofover100vehicles.

3%

61%

26%

5% 4% 1% ParcHighwayTractors(2015)byvocation

MacKaystudy

Owner/Operator

ForHire

Industry&Commerce

Construction&Mining

Agriculture

Government

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Figure18-ParcHighwayTractors(2015)byfleetsize(MacKaystudy)

Table19showsatablereproducedfromthemagazine“T21”December2016edition20givingtheheavydutyvehiclepopulationofthetop100fleetsinMexico.Theyreportforthe“top100”fleetstheuseof33,370highwaytractors,numberthatcomparesfavorablywiththe76,521,reportedbytheMacKaystudyforallfleetsofover300vehicles21.

Table19-Top100delautotransporteT21(10aEdición)Dec2016

Ranking2016 CompanyandState Trailers

(Semi) Trucks Tractors TotalFleet

1 GrupoTransportesMonterrey(GTM)/1N.L. 4000 39 2150 61892 FondodeTransporteMéxico(FTM)/2Cdmx 3764 9 1554 53273 GrupoTUM/3Edomex. 3129 568 1073 47704 AutotransportesdeCargaTresguerrasGto. 1284 622 1245 31515 FletesMéxicoChih. 2365 17 973 33556 TransportesCastoresdeBajaCaliforniaGto. 1084 1023 701 28087 TransportesMonroySchiavon(TMS)Edomex. 2409 77 658 31448 TransportesMarvaEdomex. 2040 137 653 2830

20Source:http://t21.com.mx/sites/default/files/archivo/Revista%20T21%20Diciembre%202016_0.pdf

21Notethatthetwodatasetshaveslightlydifferentdates(Dec2016vsApril2015)andthattherearealwaysdifferenceinclassification,inwhichgenerallyspeakingtheMacKaystudyconsidersthefleetbycentralizedpartspurchasingandmaintenancecontroleventhoughvehiclesmayhavedifferentowners.

7% 8%

16%

28%

41%

ParcHighwayTractors(2015)byFleetsizeMacKaystudy

1–20

21–50 51–100

101–300

>300

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9 ServiciosEspecializadosdeTransporteyLogistica(Setylsa)Coah. 1177 3 712 1892

10 TransportesLar-MexN.L. 1128 1 726 185511 TransportesOrtaN.L. 867 8 683 155812 TransportesInternacionalesTamaulipecosTamps. 1363 48 444 185513 CorporativoUNNE/4Hgo. 1181 31 520 173214 TransportesMon-Ro/5N.L. 934 27 581 154215 GrupoHGTransportaciones/6N.L. 1540 354 189416 XpressInternacionalTamps. 1400 400 180017 TransportesUnidosCastañeda(Trucka)Ags. 1007 511 151818 FríoExpressAgs. 758 564 1322

19 SociedadCooperativadeProducciónyPrestacióndeServiciosCuauhtémoc(CruzAzul)Hgo. 874 5 492 1371

20 TransportesCuauhtémocN.L. 946 240 299 148521 FletesyMaterialesForsisN.L. 870 8 420 129822 SuperTransporteInternacional(STI)Tamps. 1175 305 148023 TransportistasUnidosdeMorelos(TUMSA)Mor. 874 58 363 129524 AutotanquesNietoQro. 781 2 411 119425 GrupoValbo/7Cdmx 198 709 139 104626 TransMexSon. 650 65027 GrupoTLE/8N.L. 720 348 106828 GranPortuaria/9Pue. 360 308 258 76329 TracusaLaRutadelSolGto. 649 103 281 103330 AutotransportesElBisonteSLP. 485 49 378 91231 TransportesJuliándeObregónGto. 322 292 264 87832 TransportesPiticSon. 422 157 326 905

33 TransportesEspecializadosAntoniodelaTorreeHijosEdomex. 643 2 307 952

34 SuTransporteCdmx 608 6 304 91835 GonzalezTruckingAgs. 257 433 69036 TransportesAutoTanquesOchoaEdomex. 566 15 304 88537 GrupoTransportesPeñónBlanco/10N.L. 581 301 88238 TransportesPresurizadosCoah. 453 38 317 80839 TransportesdeCargaFemaTamps. 718 219 93740 TransportesCalvilloTracasaGto. 480 20 280 78041 FlensaGto. 507 283 79042 TransportesNarceaVer. 539 260 79943 TransportesCanalesTamps. 585 15 231 83144 TDRTransportesQro. 338 3 318 659

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45 AutotransportesAlanisTamps. 281 339 62046 RoyalTransportsGto. 388 13 289 69047 TranserviciosChih. 398 8 285 69148 CorporativoGarzaRuiz/11Tamps. 521 5 237 76349 LogísticadelMayabYuc. 564 2 222 78850 TransportesMinerosdeCoahuilaCoah. 634 2 195 83151 EnlacesTerrestresComercialesJal. 438 23 250 71152 CemexTransporteN.L. 854 14 98 96653 ServiciosdeTransportaciónJaguarEdomex. 547 3 214 76454 ExpressyTanquesEspecializadosN.L. 428 4 258 69055 AutoLíneasRegiomontanasN.L. 292 31 288 61156 TransportesQuintanillaTamps. 338 1 284 62357 TransportesKugardelPapaloapanVer. 531 15 196 74258 AutotransportesVarelaDávilaTamps. 535 20 191 74659 ExpressTresFronterasChih. 360 3 268 63160 rCExpressn.L 524 207 73161 TransportacionesIndustrialesgumeTamps. 611 1 166 77862 AutoExpressorienteJal. 426 2 224 65263 TransportesElolaEdomex. 194 1 312 50764 TransportesgarzaLealCoah. 396 232 62865 ExpressMilacgto. 449 1 209 65966 ServiciosdeTransportesCADn.L. 287 18 254 55967 InterMgAgs. 432 253 28 71368 TransportesBonampakVer. 315 3 241 55969 MovimientosTerrestresdeCargapue. 453 8 184 64570 AutoLíneasSanAntonion.L. 384 4 208 59671 ConsorciodeServiciosInternacionales(CSI)Ver. 359 163 107 62972 organizaciónSahuayoCdmx 1 507 3 51173 EspecializadosSagotgto. 377 203 58074 SetramexCoah. 394 195 58975 TransportadoraIntegraldeCargaCoah. 373 10 189 57276 TransportadoraTerrestre(Estafeta)Cdmx 495 49577 FletesModernosSagoTamps. 442 165 60778 TransportesinternacionalesJCVSon. 185 260 44579 SupertrackChih. 306 4 206 51680 TransportesgYMMonclovaCoah. 361 4 185 55081 TransportesMexAmeriKEdomex. 349 4 187 54082 TranserviciosLogisticosdelnorte(TLn)n.L. 450 150 60083 grupoCICE-ocupaVer. 360 182 542

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84 Trans-Energéticosn.L. 244 136 131 51185 SuperExpressLaChicharran.L. 464 2 138 60486 TramodelCentroSLp. 289 5 202 49687 TransportesgarcíasTruckingEdomex. 254 3 216 47388 AutotransportesdelrealChih. 241 5 208 45489 AutoLíneasCavazosgarzaHermanosn.L. 353 164 51790 LogisEnlacesInternacionalesEdomex. 360 52 123 53591 TransportesInnovativosJal. 250 200 45092 FletesyTransportesruizEdomex. 231 48 172 45193 TransportesLoroTamps. 300 14 166 48094 FletesAvellaEdomex. 148 16 218 38295 TransportesdeC.SaltilloMonterreyCoah. 293 9 167 46996 AutoExpressnoryCariben.L. 337 2 151 49097 ConsolidamexCoah. 362 10 136 50898 ImpulsoradeTransportesMexicanosSin. 269 53 140 46299 TransportesUrgentesnuevoLeónn.L. 341 144 485100 ExpressSinaloaDivisiónEnsenadaEdomex. 153 96 150 399

Total 66807 6713 33730 107087Source:T21(10aEdición)Dec2016(see:http://t21.com.mx/revista-pdf)

HighwayTractorpopulationbymake

Table20showsthedistributionofHighwayTractorsbymakeinthesample.

OverhalfoftheHighwayTractorsfoundinthesampleareKenworth,withFreightlinerinsecondplacewith31percent(seeTable20).DINAandFAMSAarealloldunitswhilsttheothermakeshaveexhibitedagrowingpenetrationoverrecentyears.Figure19showsthedistributionofthe2principalmakesofHighwayTractorbymodelyear.36percentofallFreightlinersinthesamplewereof2015ornewermodelyear(comparedthe28percentofKenworth).

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Table20-HighwayTractorsbymake number %

Kenworth 2599 56%Freightliner 1419 31%

InternationalHarvester

265 6%

Volvo 252 5%MAN 48 1%Hino 26 1%

Famsa 9 0%Dina 5 0%

Scania 5 0%

total 4628

Figure19-Distributionofthe2principalmakesofHighwayTractorbymodelyear

Highwaytractors–enginereplacementpractices

Ofrelevancetothevehiclesemissionsandfueleconomyistheageoftheengine.DuetotheextendedlifeofheavydutygoodsvehiclesinMexico,itiscommonpracticetoreplacetheengine,unlikethecoachorlighterdutygoodsmarkets.Inthesample(seeFigure20),alltheHighwayTractorsof10yearsornewerage,hadoriginalengines.AlltheHighwayTractorsofover30yearsofagehadnon-originalreplacementengines,withthereplacementoccurringovertheintervening20years.Aroundhalfofthe

0% 5%

10% 15% 20% 25% 30% 35% 40%

Distributionofthe2principalmakesofHighwayTractorbymodelyear

Kenworth

Freightliner

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HighwayTractorsof20yearsofagehavereplacementengines(usuallyofthesamemakeastheoriginalunit).

Figure20.Agraphtoshowreplacementofengines;istheengineoriginal?

HighwayTractorenginepopulationbymake

67percentoftheenginesinthesamplewereCumminsfollowedbyDetroitDieselwith25percent(seeTable21).

Table21-Enginesbymake number %

Cummins 3,069 67%DetroitDiesel 1,130 25%International 3 0%

Mercedes 10 0%Navistar 1 0%

Volvo 329 7%Hino 26 1%

Scania 5 0%Total 4,573

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2015yposteriores2013- 20142009- -20122005- 20082001- 20041997- 2000

1993 - 1996 1989- 1992

1985 - 1988 1981 - 1984

Istheengineoriginal?

Original NotOriginal

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Semi-trailers

Semi-trailerpopulation

SCTgivesthepopulationofsemi-trailersintheirannualstatisticalcompendium.Accordingtotheirnumberstheregisteredin-usefleethasgrownfrom201,000in2005to417,000in2016,anaveragegrowthrateof6.61percentperyear.Thisgivesaratioofsemi-trailersperhighwaytractorthatincreasesfrom1.20in2005to1.47in2016(seeFigure21).


Figure21-Registeredfleetofsemi-trailersinMexico


Figure22-RatioofSemi-trailersperhighwaytractor

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Registeredfleetofsemi-trailers(SCTdata)

S-6axle

S-5axle

S-4axle

S-3axle

S-2axle

S-1axle

1.001.051.101.151.201.251.301.351.401.451.50

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Ratioofsemitrailersperhighwaytractor(SCTdata)

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InTSTES’MacKay(2015)andINECC(2011)studiesasimilarratiowasfound(seeTable22),theestimationbasedonfieldsurveysof314fleetswith13,136highwaytractorsgeneratesaratioof1.17semi-trailerperowner/operator;1.46for“Forhire”transportfleets;2.01forIndustry&Commercegivinganoverallaverageon1.47semi-trailersperhighwaytractor(seeTable22)whilsttheT21,Top100fleetdatagivesaratioof1.98semi-trailersperhighwaytractorwhichismatched(1.97)inthisICCTsurveysample.

Theratioofsemi-trailersperhighwaytractorisonaverage1.97,with“IndustryandCommerce”havingthelargestnumber(2.24semi-trailersperhighwaytractor)—seeFigure23.

Table22-Ratioofsemitrailersperhighwaytractorbyvocation

Ratiosemitrailerspertractor

Owner/operator 1.17Forhire 1.46Industry&Commerce 2.01Overall 1.47

Source:TSTESfieldstudiesincludingMackay(2015)andINECC(2011)

Figure23-RatioTrailers/Tractorsbyvocation

Thelargerfleetstendtohavemoresemi-trailerspertractorthanthesmallerfleets.

0.00

0.50

1.00

1.50

2.00

2.50

Transp IndCom ConMin Agric Hcamion Otro Total

RatioTrailers/Tractorsbyvocation

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Whilstfleetstendtocarefullychoosetheirtractorsbymake,trailersareconsideredmoreofacommoditywherepriceisthemaindifferencingfactor.Partofthismaybebecauseoftheirmechanicalsimplicity(intervieweesregularlycommentedthattrailersneverdie)buttherehasbeenatechnologicalandregulationchangethathasaffectedthoseinactiveuseoverthelastcoupleofdecades.HendricksonwasestablishedinMexicoin1971,andbecametheleaderintrailersuspensionwiththeirRTseries.In1990theylaunchedtheHTairsuspensionfortrailersandin1995thefirstintegratedaxleandairsuspensionsystem(INTRAAX).TodayitisveryraretoseetrailerwithRTsuspensiononthehighway,andhastakenoutofactiveservicemanyoftheolderunits.WhilsttheSCTregisterednumberswouldgiveaparcof387,000semitrailerswithanaverageage(in2015)of16.1years,ifweseparate-outthosepriorto1995modelyearweendupwithaparcof267,000withanaverageageof6.9years.ComparedtothehighwaytractoractivefleetforumintheMacKaystudythisgivesasemi-trailerpertractorratioof1.44.

Semi-trailerpopulationbytype

Ofthesemi/trailersincludedinthesurvey,58percentweredryvanboxtrailersoftypically53ft.length.Almost17percentwerelowboytrailerswhichincludethespecializedsoft-drinkdoublesteptrailers,and14percentthetraditionalflatbedtrailerincludingasmallfractionwithstakebody.Thesethreebodystylesaccountedforover88percentofthesample(seeTable23).

However,itisimportanttonotethatthissurvey,duetoitslimitedsizecouldbeskewed.Accordingtoa2015studybytheDGAF-SCTthereare50,000refrigeratedsemi-trailersinMexico22,around12percentoftheregisteredfleetofwhich18,268areregisteredtocompanies(“ForHire”+“IndustryandCommerce”)andtheremaindertoprivateindividuals.Inthesamewaythatowner-operatortractortrailersformasmallshareoftheactivefleetdespitetheirhighregisterednumbers,itisexpectedthatthiswillalsobetrueforrefrigeratedsemi-trailers.

22Source:EvolucióndelaflotadeautotransporterefrigeradoenMéxico(2005-2015),InstitutoMexicanodeTransporte

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Table23-Semi-trailerbytype

Type Number %DryVan 4977 58.0%Lowboy 1439 16.8%FlatBed 1171 13.7%Dump&Gondola 630 7.3%Cartransporter 226 2.6%Refrigerated 67 0.8%Stakebed 24 0.3%Cage 24 0.3%Tank 16 0.2%ISOTank 2 0.0%Container 1 0.0%Total 8577

Asapointofreference,intheUSAsince2005,theratioofdryvanstoClass8tractorshasremainedinaverytightband:1.96to2.01trailerspertractoronthedryvanside(seeFigure24)23.

Source:ACTResearchhttp://trailer-bodybuilders.com/trailer-output/act-research-forecasts-us-trailer-shipments-grow-each-

year-through-2016-then-slight-dFigure24-USAratioofdryvanstohighwaytractor

23Source:SteveTam,vicepresidentofAmericasCommercialTransportation(ACT)ResearchCommercialVehicleSectorhttp://trailer-bodybuilders.com/trailer-output/act-research-forecasts-us-trailer-shipments-grow-each-year-through-2016-then-slight-d

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Semi-trailerpopulationbymake

25makesofsemi-trailerwerementionedbytheinterviewees,ofthese,threemakesaccountforalmost55percentofthesample—Utility,Fruehauf,andGallegos.Table24showstheparticipationofeachmakeinthesample.

Table24-Semi-trailerbymake

Make Number %Utility 1440 28.3%Fruehauf 714 14.0%Gallegos 629 12.4%Bronko 601 11.8%Stoughton 353 6.9%GranDanes 270 5.3%Cottrell 232 4.6%Hyundai 231 4.5%Trailmobil 149 2.9%Operbus 125 2.5%Inland 82 1.6%

Lufkin 60 1.2%Caitrasa 42 0.8%Ramirez 32 0.6%Altamirano 26 0.5%Lozano 25 0.5%Strick 21 0.4%Rema 16 0.3%Rocsa 11 0.2%RyV 8 0.2%Troy 8 0.2%Magar 7 0.1%Karma 4 0.1%Igsa 2 0.0%Pratt 2 0.0%Total 5090

Ageandexpectedlifeofvehicles

AccordingtoSCT’sregistrationrecords,theaverageageofregisteredhighwaytractorsis15.1yearswith30.3percentofthepopulationwithover20yearsofage(thatismodelyear1995orearlier).However,thissampleofactivein-usevehiclestellsadifferentstory.Theaverageageofhighwaytractorsinthe

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sampleis5.8years,whilstthatofsemi-trailersis8.4years(seeFigure25).Ofthethreevocationsmostrepresentedinthesample,“Constructionandmining”hastheyoungestfleetofhighwaytractorsandsemi-trailers(2.5and4.6yearsrespectively).“ForHire”hasanaverageageforhighwaytractorsthatislowerthan“IndustryandCommerce”(5.8and6.2yearsrespectively)buttheirsemi-trailerfleetisolder(9.2and8.2yearsrespectively).Thesenumbershavebeenrepeatedlypeer-reviewedbythemajorvehiclemanufacturersandalignwiththeirexperienceandotherstudies.

Averageageofvehiclesbyvocation

Figure25-Averageageofvehiclesbyvocation

HighwayTractorpopulationbyremaininglife

Thetimethatthefleetexpectstokeepthevehicleinoperationbeforesellingit,variessubstantiallybyvocation.Figure26showshowIndustryandcommerceexpecttousetheirvehiclesofmodelyear2013orneweranadditional8years.Thislifeexpectancedropstooneyearforvehiclesthatare20yearsold.

For“ForHire”transportfleetsthestoryismorecomplex.Newvehiclesthataretypicallyboughtbythelargerfleetshavealifeexpectancy(withtheirfirstbuyer)oflessthan12years.These(togetherwithprivatefleetvehicles)arethenresoldtosmallerfleetsandresoldagainuntiltheyendupinthehandsofowner-operatorsandsmallfleets.Becauseofthis,aftertheunithashad25yearsofoperation,itsexpectedlifereachesanewpeakofanadditional12years.Noneofthefleetsinthesamplehadvehiclesolderthan1984modelyear(33years).

024681012141618

Years

Averageageofvehiclesbyvocation

Tractoraverageage Traileraverageage

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Thereisacleardifferentiationbetweenthelargerfleetsthatoperatewithintheformalsector,buyneworrecent-modeltrucksandsetfreightpriceparameters,andthesmallfleetsandowner/operatorsthatoftenoperateinamoreinformalenvironment.AccordingtoCarlosGilJiménez,sub-directoroftheDirecciónGeneraldelAutotransporteFederalSCT,theseareforcedtowardstheinformalpurchaseofoldtrucksfromacquaintancesinsteadofbenefitingfromscrappageorothergovernmentfinancing,becausetheyarenotcreditworthy,operatemainlyonacashflowbasisandavoidtheadditionalexpenseofoperatinginamoreformalstructure.Aslongastheauthoritiesexertlimited—ornegligible--controlontheseoperators,heandCONATRAMexpectdisordertocontinueinthissectorofthemarketthatinvolvesanexcessivenumberofold,lowusage,vehicles.

Figure26-Howmanyyearsmoreareyouplanningonusingyourhighwaytractor?

Semi-trailerpopulationbyremaininglife

Figure27showshowIndustryandcommerceexpecttousetheirsemi-trailersofmodelyear2015orneweranadditional10years.Thislifeexpectancedropstotwoyearsforunitsthatareofmodelyear2004orolder.Inthesample,Industryandcommercedidnothaveanysemi-trailersofover20yearsofage.

For“ForHire”transportfleetsthestoryismorecomplex.Newsemi-trailersthataretypicallyboughtbythelargerfleetsandhavealifeexpectancy(withtheirfirstbuyer)of15years.However,astheygetresoldtosmallerfleetstheirlifeextendsconsiderably.Eventhoseunitsinthesampleof1984modelyear(33yearsold)wereexpectedbytheirownerstohaveanadditional10yearsofuseinthem.

0

2

4

6

8

10

12

14

2015&later

2013-2014

2009- -2012

2005-2008

2001-2004

1997-2000

1993 -1996

1989-1992

1985 -1988

Yearsa

ddition

alse

rvice

Model-year

HighwayTractors:Howmanyyearsmoreareyouplanningonusingit

ForHire Industry&Commerce

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Alargenumberoftheinterviewees,hadaclearideaoftheexpectedlifeoftheirhighwaytractorsbutwhenaskedasimilarquestiononsemi-trailersanswered“forthelifeoftheunit”withouthavingaclearexpectationofhowlongthatmaybe.

Figure27-Semi-trailers:Howmanyyearsmoreareyouplanningonusingit?

HighwayTractorTechnology

Onadifferenttheme,thesurveyaskedaboutthenumberofvehiclesthat(i)hadelectronicfuelinjection;and(ii)werecompliantwithEPA2004regulationstobeabletoentertheUSA24.Heretheintervieweesstatedthatover98percentofallthehighwaytractorshadelectronicinjectionexceptforthe“ForHire”vocation(82percent)andagriculture(89percent).Similarly,over95percentof“Industry&Commerce”and“Construction&Mining”vocationsmettherequirementsoftheEPAtooperateintheUSA,whilstonly50percentof“ForHire”,“Agriculture”,and“Owner-operator”vocationsmetthistechnologicallevel(seeFigure28).ItisimportanttonotethatCaliforniarequiresMexicantruckstobeEPA2010compliant.

24The1994NorthAmericanFreeTradeAct(NAFTA)containedaprovisionthatcalledforMexicantruckstobeallowedtotravelbeyondthe6–25milewide“commercialzone”intheUSbyDecember1995.ThiswashotlyopposedbytheTeamstersUnionandfinallycameintoforceinOctober2011.TheagreementrequirestheMexicantruckstomeetatleastEPA2004emissionsstandardsamongstotherrequirements.TheagreementalsogivesUStruckingcompaniesaccesstoMexicanhighways,butfewtakeadvantageofthisbecausetransportcostswithMexicanhaulersismuchcheaper.ItdoesnotchangemuchforMexicantruckingcompanieseitherbecauseadifferentlawprohibitsthemcarryinggoodsbetweenUSdestinations,soiftheydonothaveareturndeliverythetruckscomebackempty.

02468

10121416

Yearsa

ddition

alse

rvice

Model-year

Semi-trailers:Howmanyyearsmoreareyouplanningonusingit

ForHireIndustry&Commerce

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TheVehicleOEMshaveresistedpromotinginMexico,heavy-dutyvehiclesthatmeetcurrentEPAemissionsregulationsuntilthedieselspecifications(ultra-lowsulfur)inthewholecountryareconsistentwiththeUSA.

Figure28-Technologicallevelofhighwaytractors

Severalfleetscommentedontakingadvantageofthevehicle'stechnology.Theyparameterizethreepoints:

1) Speed:Sayingthattheydonotrequirespeed,onlytorque.Atopspeedof70kilometersperhourismorethanenoughformanyfleetswhichhelpsthemtosavefuel.

2) Theautomaticenginestopsetatthreeminutes.Thatlogicallyhelpsgreatlydecreasethefuelconsumption.

3) Anotherfunctionthatcurrentelectronicenginesallow,istoreduceandlimitthemaximumenginespeedinidle.Oneofthebadpracticesthatoperatorshaveistostartthetruckandimmediatelyaccelerateittowarmupfaster.Thatleadstorevolutionsperminuteof2,500rpm,forexample.Manyfleetstakeadvantageofthetechnologyandareprogrammedinsuchawaythatthemaximumrevolutions,whenthetruckisstationary,areat1,500or1,700rpm.Thatalsohelpstocontrolconsumption.

Manyofthelargerfleetsreportedhavinganalyzeddifferenttechnologies.However,oftenthereisnotenoughinformationtomakeadecisiononinvestinginaparticularfeature.Forexample:tires.Thefleets“know”thattherearetiresthathelpreducefuelconsumption,butnoonecantellthemhowmuchbenefittheywillgiveundereachfleet’sstyleofoperation.Thisrequireseachfleettoinvestintests,evaluations,andbuildabusinesscaseanalysis.Thosethatdothis,donotfollowanyknowntest

0%

20%

40%

60%

80%

100%

ElectronicInjection MeetsEPA

FractionofHighwaytractorsthathaveelectrionicinjectionandmeetUSEPA2004specifications

ForHire Industry&Commerce Construction&Mining

Agriculture Owner-Operator Other

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protocol,andwithoutanythingestablished,donotproduceresultsthatwouldhelpanotherfleetbasetheirdecisions.

Accordingtotheinterviewees,onebenefitofhavingthe“TransporteLimpio”Program,isthatitpushesthemtobeconstantlymeasuring,andthinkingaboutfutureimprovements.However,theprogramcoulddoalotmoreinhelpingfleetsobtaininformationtobasetheirinvestmentdecisionson,withouthavingtodoindividualtesting.

IntheUSA,theTechnology&MaintenanceCouncilofAmericanTruckingAssociations(TMC)providesaccesstoqualitydataonexpectedefficiencyimprovementsandthecostsassociatedwithobtainingthembyestablishingtestprotocols25andhelpinggeneratethatinformation,andparticipatinginforumswherethisinformationisshared.Inmanycasesasingleproductcanbeavailablefromanumberofdifferentsuppliers(suchastraileraerodynamictreatments)andthisTMCtestingisparticularlyusefulinthesecases.

ItwouldbeveryusefulforTransporteLimpiotoprovideaspartoftheprogramsomekindofcalculator,thathelpsfleetswithdeterminingthereturnoninvestmentforthesetechnologies.Mostfleetsarereallylookingforpaybackof18or24months.

Thethemeofbiodieselisalsoimportantandissomethingthefleetsknowlittleabout.Theyknowthatenginemanufacturersonlyallowyoutomix95percentdieseland5percentbio,butbelievethattherecouldbebigbenefitsofgoingtohighermixes.

Tires

Theintervieweeswerequestionedaboutthemakeoftirethattheyuse.ThemostpopularbrandisMichelin(Xone&Duals)with26percentfollowedbyBridgestone(Ecopia)with19percentandinthirdplacethosethatdonotspecifyaparticularmakeoftire(14percent)–seeTable25.

ThepreferencesforMichelinandBridgestonearebasedondurability,prestige,andfueleconomygivingthelowestcostperkm(accordingtothosethatuseeach).Thosethatdonotspecifyabrandormake,lookforlowestcostoftenspecifyingnewradialtiresforthehighwaytractorandretreadedunitsforthesemi-trailer.TheusersofFirestonehighlightthattheycanbeeasilyretreaded,whilsttheusersofGoodyearfocusontheirdurability.TheownersthatchooseChinesetiresdosospecificallybecauseoftheirlowinitialcost.

25Asanexampleofthis,theJointTMC/SAEFuelConsumptionTestProcedure-TypeII(J1321_201202)providesastandardizedtestprocedureforcomparingthein-servicefuelconsumptionoftwoconditionsofatestvehiclethatisespeciallysuitablefortestingtheefficiencygainfromcomponentsinfleetvehiclesofover10,000lbs.GVWoperatingoverrepresentativeroutes.

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Table25–MakeofTireused

Makeoftire %Michellín(Xone&Duals) 26%Bridgestone(Ecopia) 19%Goodyear 7%Firestone 7%China 7%BFGoodrich 5%Yokohama 2%SumitomoTire 2%

DominatorTires 2%Continental 2%TriangleTire 2%DaytonTruckTires 2%Nospecificmake 14%

Accordingtothetransportfleetsinterviewed,aMichelintirecostsaround,MN$5000,givingalifeof150thousandkilometers.BridgestonecostsMN$4000,butgivesalifeofonly130thousandkilometers.

TheMichelinsupersinglewidebasesingledrivetiregivesgoodfueleconomybutisnotallowedfordangerouscargos.Ithasanissueofreplacementandserviceiscomplicated:itisnoteasytofindapersonwhoknowshowtorepairthattirebecauseitcarriesanotherspecificationofpatchrepairsandconsumables.BothMichelinandBridgestonehavesupersingleshereinMexico.InthecaseofMichelin,ithasestablishedroutebasedservicesupportfromMexicoCitytoNuevoLaredoandMichelinprovidesan0800telephonenumberforfleetstocallandaserviceguarantee.MexicotoTijuanaistheothercorridortheyaredeveloping.

UsageofAirConditioning

Oneofthequestionsaskedinthe2011fieldsurveyoffleetspertainedtotheuseofairconditioningintheirunitsbecauseofitsimpactonfueleconomy.Thestudydiscoveredthat75percentofhighwaytractorshadACfittedtotheircabs(seeTable26),withthepercentagehighestinprivatefleetsthattransporttheirowngoodssuchasIndustry&Commerce(98percent)andAgriculture(92percent)withtheForHirefleetrunningmorethan20percentagepointsbehind(72percent)andalmostnon-existentintheOwner-operatorunits.

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Asfarasreefersemi-trailersareconcernedin2011,only16outof2,855vehiclesinthesampletypicallyhauledreefer-equippedtrailers.

Table26-UsageofAirConditioningHighwayTractors

Owner-Operator ForHire Industry&

CommerceConstruction&Mining Agriculture Govern

ment Total

TotalVehicles 6 2,353 344 107 13 32 2,855WithAirConditioning 1 1,687 336 70 12 26 2,132WithReefersemitrailer 0 4 11 0 1 0 16Percent WithAirConditioning 16.7% 71.7% 97.7% 65.4% 92.3% 81.3% 74.6%WithReefersemitrailer 0.0% 0.2% 3.2% 0.0% 7.7% 0.0% 0.6%

Source:TSTESfieldstudyforINECC(2011)

Fuelefficienttechnologiesadoptionintheowner-operatorandsmallcarrierssegment

Intermsofspecificindustrydataandpenetrationratesofenergyefficienttechnologies,thereisstillverylimitedinformation.TransporteLimpiohasaverysmallsamplethatincludesonlythelargecarriersparticipatingandreportingthesolutionstheyareimplementingaspartoftheprogram(SeeChapter8formoredetailsonthisprogramandthetechnologyimpact).In2014,thestudy“DiagnósticoSobrelaSituaciónActualdelSectordelAutotransportedeCargaconunEnfoqueEspecíficoalHombre-CamiónyPequeñosTransportistas”supportedbyGIZ,analyzedthetypeofvehicles,practices,andbehavioroftheowner-operatorandsmallcarrierssegmentinMexico.Thestudycollectedinformationofabout1,433throughafieldsurveyappliedtofreightoperatorsanddrivers.

Thesurveyincludedsomequestionsabouttheuseofdifferentfuel-efficientrelatedtechnologies.Thequestionsfocusedoninvestigatingentry-leveltechnologiessinceitwasmorelikelythatthesegmentanalyzedwereusingatleastoneofthesetechnologies.Figure29showsthepercentageofunitsthatincludedeachofthetechnologieslistedinthesurvey.Asobserved,lowfrictionlubricantsanddieselparticlefilterswerepresentinaboutone-thirdoftheunits.Moreadvancedtechnologiessuchasautomatictireinflationsystemsandlightweighthaveasmallpresenceonthesegmentwithlessthan10%ofuse.Interestingly,itseemsthereisanopportunitytoscaleuptheusabilityofGPSwhichisalreadypresentinmorethanhalfoftheunitsbutareonlyusedfortrackingpurposes.The15%ofunitsusingGPSforrouteplanningcanpossiblyincreasewithasmallereffortforthoseunitsthatarealreadyusingthesystemfortracking.Althougheco-drivingisnotexactlyatechnology,itisastrategythatmorethan30%ofthedriversareapplying,thiscanbeanindicatoroftheincreasingawarenessinthesector,

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andparticularlyintheowner-operatorsegment,oftheimportanceofdrivertrainingtomaterializefuelsavingsatarelativelylowcost

Figure29–Fuelefficienttechnologypenetrationintheowner-operatorandsmallcarriersegmentSource:SEPSA,2014

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

100%

GPS(trackingonly)

Lowfrictionlubricants

DieselParticleFilter(DPF)

Eco-driving GPSforrouteplanning

Automatictireinflationsystem

Lightweighting None

Percentagefrom

surveyedunits

Fuelefficienttechnologypenetration

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Chapter4:-VehiclePurchasing

Thischaptercompilesinformationonhowfleetsbuyhighwaytractorsandsemi-trailers.Itlooksatthesourcesofinformation,advertising,andpublicitythatisusedtopromotesecond-handvehiclesales,howpurchasesarefinanced,andthemotivesforselectingaspecificbrand.

SourceofinformationandpublicityTheOEMdealerisstillthepredominantsourceofinformationonsecond-handhighwaytractorsandsemi-trailers.Fortheformer,theirinfluenceasasourceofinformationonavailablesecond-handvehicleshasincreasedsubstantiallyoverthelast5years(from21to50percent)andforthelatter,ithasincreasedfrom18to48percent.Inbothmarkets,buyingfromaknownfleetkeepsits2ndspotinimportanceaccountingforaround23percentofpurchasesinbothmarketsandoverbothperiods.Thelargesttransportfleetstendtobuynewvehicleson36to48-monthcommercialcreditandoftensellthesevehiclesafter4–5years.Theyarethensold,normallybythefleetsthemselves,andoccasionallybyOEMdealers,tothenextleveloffleet.Verylimitedadvertisingaccompaniesthesesalesasbuyersandsellersareusuallyknowntoeachotherthroughpreviousoperations.Publicitystartstopayaroleinthenextlevelofsalewhenthehighwaytractorhasaround6-8yearsofuse.Thesevehiclesstartappearinginon-lineadverts,usuallypromotedbytheirowner.MotivesforchoosingaspecificmakeofhighwaytractorIntervieweeswereaskedtoratealistofreasonsforchoosingthemakeofhighwaytractorthattheyendedupbuying.73percentofintervieweesrated“FamiliaritywiththeBrand”ashavingthehighestimportancecloselyfollowedbyprice(64-66percent)considering“Priceandavailabilityofspareparts”and“PriceoftheUnit”respectively.43percentoftheintervieweesalsoconsidered“FuelEconomy”important.36to37percentalsograded“Durabilityoftheunitinourroutes”,and“Power/Handling”.Interestinglythepreferenceofthedifferentareasofthefleetreceivedverylowscores.Motivesforchoosingaspecificmakeofsemi-trailerForsemi-trailers,theoverwhelmingreasonforselectingaspecificunitisprice(52percentofinterviewees)followedby“FamiliaritywiththeBrand”(50percent)and“Durabilityinourroutes”(43percent).“Priceandavailabilityofspareparts”cameinfourthplacewith25percentofthesample.

ChapterHighlights

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HowpurchasesarefinancedThepredominantmeansofbuyingahighwaytractororsemi-traileristhroughtheapplicationofthefleet’sownresources(equity).Around70percentofunitsarepurchasedinthisway,duetothedifficultyofaccessingfinancing.However,overthelastfiveyearsthissituationhaschangedslightlywithfinancingthroughOEMsplayingalargerpart,increasingfrom9percentto15percentforhighwaytractors—tobecomethesecondmostimportantsourceafterequity--andfrom6to9percentforsemi-trailers.Forsemi-trailersthesecondmostimportantsourceisleasing,whichhasincreasedfrom6to17percentoverthelast5years,whereashighwaytractorsleasingwentform6to12percentinthesameperiod.BankcreditwasanoptiononlyforIndustry,CommerceandAgriculturalcompaniesthathavegoodcreditratings.Transportfleetsdonothavethisoptionandaremoredependentonthecommercialcreditofferedbythecompanysellingthevehicle.Owner/operatorspurchaseover80percentoftheirvehiclesusingtheirownresources,becausetheydonothaveanyalternative.Theytypicallyhaveoldervehicleswithlowannualmileages,lowloadfactors,andverylimitedaccesstofinance,whichmakesitverydifficultforthem,asagrouptoprogress.CurrentproblemswithfinancingIntervieweescitedhighinterestrateastheprincipalproblemforprivateloans.Leasing,despitebeingexpensivehasincreaseditsparticipation,particularlyforsemi-trailers,whilstOEMfinancingisbecomingthepredominantsourceofexternalfundingforhighwaytractors.ThemainproblemsassociatedwithgettingOEMfinancingfornewvehiclesare;highinterestrates,difficultyinprovingadequateincome,loanperiodtooshortandthevehiclenotalwaysbeingconsideredascollateralfortheloan.ChoiceofEngineTechnologyOver98percentofallthehighwaytractorsinthemostrecentsurveyhadelectronicinjectionexceptforthe“ForHire”vocation(82percent)andagriculture(89percent).Similarly,over95percentof“Industry&Commerce”and“Construction&Mining”vocationsmettherequirementsoftheEPA2004tooperateintheUSA,whilstonly50percentofothervocationsmetthistechnologicallevel.Inthe2011surveywefoundthat75percentofhighwaytractorshadACfittedtotheircabswiththepercentagehighestinprivatefleetsthattransporttheirowngoodssuchasIndustry&Commerce(98percent)andAgriculture(92percent).Incontrast,for-hirefleetsaremorethan20percentagepointsbehind(72percent)andalmostnon-existentintheowner-operatorunits.ImportanceofReplacementpracticesEngine’sageisacriticaelementforvehicles’emissionsandfueleconomyperformance.Allthehighwaytractorsof10yearsorless,hadoriginalengines.Allthehighwaytractorsofover30yearsofagehadnon-originalreplacedengines,withthereplacementoccurringovertheintervening20years.

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NewVehiclesales

HeavydutyvehiclesalesinMexico,andparticularlyhighwaytractors,havealwaysbeenveryreactivetoanychangesintheeconomy.EacheconomiccycleisclearlymarkedinFigure30whichshowsunitwholesalesales(inunits)andnationalGDPgrowth(aspercent).Salestodistributorsin2016reachedrecordlevels(18,225)surpassingtheprevioushighin2007,beforetheUSArecession.

Source:TSTESrecordsfromAMIA,ANPACT,INEGIandotherdata

Figure30-Nationalsalesofhighwaytractors(Wholesale)

Onalifetimesalesbasis,from1963to2010,48percentofallhighwaytractorssoldinMexicohavebeenKenworth(seeFigure31).InsecondplacethecombinationofAutocar,Famsa,Mercedes,andFreightlinercomesinwith21percent,followedbyDinawith10percent.

-25.0

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

02,0004,0006,0008,00010,00012,00014,00016,00018,00020,000

GDPgrow

th(%

)

Units

Nationalsalesofhighwaytractors(Wholesale)includesimports

Sales(units)

GDPGrowth%

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Source:AMIA,ANPACT,INEGI

Figure31–Totalnationalsalesofhighwaytractorsbymanufacturer1963-2010

Themostrecentyearwithpublishedsalesdatabymanufacturer(2010)showsthatKenworthhasmaintaineditsleadaccountingin2010for57percentofnationalsalestodealers(seeFigure32).Freightlinerin2010isinsecondplacewith20percentandNavistarinthirdwith15percentofsales26.

26NotethatNavistarenteredtheMexicanmarketin1998

Kenworth

Autocar/Famsa/Mercedes/Freightliner

Dina

Navistar

Ramirez/TrailersdeMonterrey/Volvo

Scania

Sterling

Mack

Others

Lifetimesalesto2010bymanufacturer

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Source:ANPACT

Figure32-2010Nationalsalesofhighwaytractorsbymanufacturer

Purchasepatternsofvehicles

Aseriesofquestionsrelatedtohowunitsarebought,startingwithhowfleetslocatetheunitsthattheywishtobuy,andhowthishaschangedoverthelast5years.

TheOEMdealerisstillthepredominantsourceofinformationonsecond-handhighwaytractorsandsemi-trailers.Fortheformer,theirinfluenceasasourceofinformationhasincreasedsubstantiallyoverthelast5yearsfrom21to50percentandforthelatter,ithasincreasedfrom18to48percent.

Inbothmarkets,“buyingfromaknownfleet”keepsits2ndspotinimportanceaccountingforaround23percentofpurchasesinbothmarkets,todayand5-yearsago.

Accordingtothefleetsinterviewed,KenworthcontinuestobethemarketleaderbutVolvoisfightingtoincreaseparticipationbylendinghighwaytractorstofleetswithnopayment.ThefleetsaregettingapositiveexperiencewithVolvo,whichtheysayhasgoodperformance.However,Volvoisconsideredtobemoredelicatefromamaintenancepointofview;itspartsarenotsoeasilyfoundandaremoreexpensive--butnotasexpensiveasMercedesBenz.ThefleetsreiteratedthatonebigadvantageofKenworthisthatitspartsarecheaper,andcanbeeasilyfoundanywhereinthecountry.

0%

50%

100%

Nationalsalesmixofhighwaytractorsbymanufacturer(Wholesale)includesimports

Kenworth Autocar/Famsa/Mercedes/FreightlinerDina NavistarRamirez/TrailersdeMonterrey/Volvo ScaniaSterling Mack

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MostFreightlinercustomershavecreditagreementsandareacquiringhighwaytractorsthroughpureorfiscalleaseagreementsinwhichthemanufacturerisresponsibleforkeepingtheunitingoodcondition.Otherpurchasersmakeuseofthetraditionalcreditsystem.Ofthese,thelargercompaniestendtorequesttechnicalandmaintenancetrainingfromthemanufacturer,aspartoftheagreementofcollaborationintheacquisitionoftheunits.

Theintervieweesagreedthissectorneedsaccesstoflexibleloans,withclearoperatingrulesthatareroutinelycompliedwith.Inaddition,theystressedtheimportanceofallowingthevehicleasguaranteeforthepaymentoftheunit.

Owner-operatorsrequireadditionalhelp.Currentlytheyownmainlyvehiclesfrom20tomorethan30yearsofageandtypicallyoperatewithverylowannualmileage(onaverage,aquarteroftheexpectedusageofanewunitinlargefleet)andalowutilizationrate,soitisimpossibleforthemtobuynewunits.Theycanonlyaffordtobuyolderunits,whicharenotsubjecttocreditandareintrinsicallymoreexpensivetooperate,whichfurtherreducestheirpossibleoperatingprofit,limitingfleetrenewalevenfurther.

Severalactionswouldberequiredtoreversethistrend;theavailabilityofasoftcreditsystemcouldallowowner-operatorstoleavebehindtheiroldestvehicles,andbeenticedtobecomemoreefficientorganizationsthatcaneasilycomplywithlawsandregulations.Inaddition,itwouldbeimportanttofixamaximumageforin-useheavydutyvehiclesthatencouragesfleetrenewalandremovesfromcirculationthoseobsoleteandunsafeunits.

UsedVehiclesales

Asdiscussedpreviously,thelargesttransportfleetstendtobuynewvehicleson36to48monthcommercialcreditandoftensellthesevehiclesafter4or5years.Overthisperiodthevehicleismainlycoveredbywarranty,andhasverylimitedmaintenancecostsordowntime.Thentheyaresold,normallybythefleetsthemselves,andoccasionallybyOEMdealers,tothenextleveloffleet.Saleadvertisingisverylimited,asbuyersandsellersareusuallyknowneachotherthroughpreviousoperations.SomefleetsadvertisetheirvehiclesforsaleontheirFacebookpages(forexamplePaqueteriaCastores).

Severallargefleetscommentedthattheyhaveagentswhoknowthateveryyearthefleetwillgettingridofaround30to40highwaytractorsandsetupauctionsforthem.Theseagentsaregivenapercentageofthesaleofeachtruckthatissold.

Howarevehiclesforsalelocated

Publicitystartstopayaroleinthenextlevelofsalewhenthehighwaytractorhasaround6to8yearsofuse.Thesevehiclesstartappearinginon-lineadverts,usuallypromotedbytheirowner.Fivepopular

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sitesadvertisingsecondhandhighwaytractorsareillustratedinTable27.Figure33showsthedistributionofadvertisedsecondhandhighwaytractorsononeofthesesitesbymake,modelyearandaskingprice.

Table27-PopularsitesforusedhighwaytractorsSite highwaytractorsonsalehttps://www.vivanuncios.com.mx Over700https://www.seminuevos.com Over200http://www.todoclasificados.mx/ Over200http://www.segundamano.mx Over160http://vehiculos.mercadolibre.com.mx Over80

Source:TSTESinvestigationonMarch14,2017

Source:3/14/2017http://vehiculos.mercadolibre.com.mx/camiones/tractocamion

Figure33-UsedHighwayTractorsonsalebymodelyear

MercadoLibre(http://www.mercadolibre.com.mx/)hasdiminishedconsiderablyinimportance.Forthefleetsinthesurvey,5yearsagothissitewasusedtolocate15percentofhighwaytractorsandsemi-trailerscontrastingwithtodays12percentand8percentrespectively.ItsnearestcompetitorVivanuncios(www.vivanuncios.com.mx)has,accordingtothislimitedsample,only4percentofreferralstoday,slightlyupfrom3percent,5yearsago.

Itisinterestingtonotethatrecommendationsofacquaintancesusedtobeimportantinthisdecisionfiveyearsago(with21and23percentforhighwaytractorsandsemi-trailersrespectively)buttoday

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1971 1976 1981 1986 1991 1996 2001 2006 2011 2016

AskingPric

e($MN)

ModelYear

UsedHighwayTractorsonsale

Freightliner International Kenworth Volvo

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accountsforaround4percent.Similarlyadvertsinmagazinesandnewspapersandtheclassifiedsectionhavedroppedinimportancefromover15percenttounder4percentforsemi-trailersandzeroforhighwaytractorsinfiveyearswiththeriseintheuseofelectronicmedia(seeTable28).

Table28-Howdoyoufindtheunittobeabletobuyit?

HighwayTractors Semi-trailersMedio Now 5yearsago Now 5yearsagoPercentresponses % % % %OEMDealer 50.0% 20.5% 48.0% 17.9%Throughaknownfleet 23.1% 23.1% 24.0% 23.1%MercadoLibre 11.5% 15.4% 8.0% 15.4%Vivanuncios 3.8% 2.6% 4.0% 2.6%Segundamano 3.8% 2.6% 4.0% 2.6%Throughaknownperson 3.8% 20.5% 4.0% 23.1%SaleslotinMexico 3.8% 0.0% 4.0% 0.0%Todosclasificados 0.0% 5.1% 4.0% 5.1%AdvertinMagazine/Paper 0.0% 10.3% 0.0% 10.3%SaleslotinUSAorborder 0.0% 0.0% 0.0% 0.0%Other 0.0% 0.0% 0.0% 0.0%Total 100.0% 100.0% 100.0% 100.0%

Expectedsalespriceforusedunits

Table29showstheresponsesoftheinterviewedcompaniesontheirexpectedsalespriceforunitsthattheyputintothesecond-handmarket.Itcanbeseen,bycomparisonwithFigure33thatthesearepretty-muchin-linewiththeadvertisedmarketvalues27.

27withsomedifferencescausedbyadditionalequipmentand/orindividualnegociationstrategies

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Table29-Expectedsecond-handresaleprice

HighwayTractors Semi-trailersCondition Excellent Good Excellent Good2015yposteriores 2013-2014 900,000 741,667 2009--2012 800,000 490,452 2005-2008 266,667 79,1102001-2004 600,000 325,000 76,2711997-2000 100,000 45,8421993-1996 19,6671989-1992 300,000 39,4001985-1988 33,0001981-1984 234,000 1977-1980

Motivesforchoosingaspecificmakeofhighwaytractor

Intervieweeswereaskedtoratealistofreasonsforchoosingthemakeofhighwaytractorthattheyendedupbuyingonascaleof0to5where5isthehighestimportanceand0noimportanceatall.

Amongstthe44fleetssampled,77percentofintervieweesrated“FamiliaritywiththeBrand”ashavingthehighestimportancecloselyfollowedbyprice(68percent)considering“Priceandavailabilityofspareparts”and“PriceoftheUnit”.

48percentoftheintervieweesalsoconsideredimportant“FuelEconomy”.46percentalsograded“Durabilityoftheunitinourroutes”,and“Power/Handling”.Interestinglythepreferenceofthedifferentareasofthefleetreceivedlowscores:Operators25percent,ManagerorOwners23percent,andworkshop/servicemanageronly5percent28.

28Negativedifferencesimplythatmorefleetsconsideredtheitemasunimportanttanthosethatconsidereditimportant

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Table30–ReasonsforchoosingthismakeofHighwayTractor

Important Neutral UnimportantRating 4or5 3 0,1,or2

FamiliaritywiththeBrand 77.3% 18.2% 4.5%Priceandavailabilityofspareparts 68.2% 27.3% 4.5%PriceoftheUnit 68.2% 29.5% 2.3%Fueleconomy 47.7% 47.7% 4.5%Durabilityinourroutes 45.5% 45.5% 9.1%Power/Handling 45.5% 47.7% 6.8%Preferenceoftheoperators 25.0% 68.2% 6.8%Peferenceofthefleet(ManagerorOwners) 22.7% 77.3% 0.0%Availabilityofcredit 18.2% 70.5% 11.4%Toretaingoodoperators 9.1% 81.8% 9.1%ContractualObligationsoftheCompany 6.8% 81.8% 11.4%Preferenceoftheworkshop/servicemanager 4.5% 84.1% 11.4%

Motivesforchoosingaspecificmakeofsemi-trailer

Forsemi-trailers,amongstthe44fleetsinterviewed,theoverwhelmingreasonforselectingaspecificunitisprice(57percentofinterviewees)followedby“FamiliaritywiththeBrand”(50percent)andDurabilityinourroutes(46percent).“Priceandavailabilityofspareparts”cameinfourthplacewith32percentofthesample.Allotherreasons,includingpreferencesofoperators,ownersandservicemanagersreceivedlittleimportance(seeTable31).

Table31-ReasonsforchoosingthismakeofSemi-trailer

Important Neutral UnimportantRating 4or5 3% 0,1,or2

UnitPrice 56.8% 38.6% 4.5%FamiliaritywiththeBrand 50.0% 47.7% 2.3%Durabilityinourroutes 45.5% 52.3% 2.3%Priceandavailabilityofspareparts 31.8% 61.4% 6.8%FuelEconomy 18.2% 70.5% 11.4%Power/Handling 18.2% 68.2% 13.6%Preferenceoftheflotilla(managerorowners) 11.4% 88.6% 0.0%Creditavailability 11.4% 79.5% 9.1%Preferenceoftheoperators 9.1% 79.5% 11.4%Preferenceoftheworkshop/servicemanager 4.5% 86.4% 9.1%ContractualObligationsoftheCompany 4.5% 88.6% 6.8%Toretaingoodoperators 2.3% 86.4% 11.4%

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Howpurchasesarefinanced

Thepredominantmeansofbuyingahighwaytractororsemi-traileristhroughtheapplicationofthefleet’sownresources(equity).Around70percentofunitsarepurchasedinthisway,duetothedifficultyofaccessingfinancing(seeTable32).However,overthelastfiveyearsthissituationhaschangedslightly;financinghighwaytractorsthroughOEMsandleasingsemi-trailershavebecomethesecondmostimportantacquisitionmethod.Bankloanstobuyunitshavediminishedoverthisperiodfrom3percentfiveyearsagoto0percenttoday.Intervieweescitehighinterestratesandhighcollateralrequirements(notenoughequity)asbeingthemainreasonforthis.

Table32-Howthepurchaseofaunitwasfinanced

HighwayTractors Semi-trailers

Now 5yearsago Now 5yearsago % % % %Ownfunds(Equity) 69.2% 71.4% 69.6% 77.1%FinancingthroughOEM 15.4% 8.6% 8.7% 5.7%Leasing 11.5% 5.7% 17.4% 5.7%Privateloan 3.8% 8.6% 4.3% 8.6%Bankloan 0.0% 2.9% 0.0% 2.9%Rent 0.0% 0.0% 0.0% 0.0%Other 0.0% 2.9% 0.0% 0.0%

Morevocationaldetailonhowpurchaseswerefunded5yearsagoisprovidedbytheTSTESINECCsurvey.Figure34(andTable33)showhowhighwaytractorpurchaseswerefinanced.BankcreditwasanoptiononlyforIndustry,CommerceandAgriculturalcompaniesthathavegoodcreditratings.ForHirefleetsdonothavethisoptionandaremoredependentontheCommercialcreditofferedbythecompanysellingthevehicle.Owner/operatorspurchaseover80percentoftheirvehiclesusingtheirownresources,becauseofthelackofalternatives.Theytypicallyhaveoldervehicleswithlowannualmileages,lowloadfactors,andverylimitedaccesstofinance,whichmakesitverydifficultforthemtobuynewervehicles.ForHirefleetsalsohavelimitedaccesstobankfinancebutaremorecreditworthywithvehicledealers.Government(althoughthesamplesizeisverylimited)dependalmostexclusivelyoncommercialcredittobuyvehicles.

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Figure34-Howhighwaytractorpurchaseswerefinanced

Table33-Howhighwaytractorpurchaseswerefinanced

HighwayTractors O/Operator ForHire Ind&Com Con&Min Acric Gov TotalTotalvehicles 6 2,353 344 107 13 32 2,855OwnResources 5 1,529 191 42 7 3 1,777CommercialCredit 1 813 71 23 3 26 937BankCredit 0 1 80 0 3 0 84OtherLoans 0 10 2 42 0 3 57percent OwnResources 83% 65% 56% 39% 54% 9% 62%CommercialCredit 17% 35% 21% 21% 23% 81% 33%BankCredit 0% 0% 23% 0% 23% 0% 3%OtherLoans 0% 0% 1% 39% 0% 9% 2%


Currentproblemswithfinancing

Intervieweescitedinterestrateastheprincipalproblemforprivateloansandrentalpayments,causingtheirparticipationtodiminishoverthelast5yearsasotherattractiveoptionsbecameavailable.Despitebeingexpensive,leasinghasincreaseditsparticipationparticularlyforsemi-trailers.WhilstOEMfinancingisbecomingthepredominantsourceofexternalfundingforhighwaytractors,themainproblemsgettingOEMfinancingfornewvehiclesarehighinterestrates,difficultyinprovingadequateincome,loanperiodtooshortandthevehiclenotalwaysbeingconsideredascollateralfortheloan(see

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Hownewvehiclepurchasesarefinanced

OwnResources CommercialCredit BankCredit OtherLoans

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Table34).Financingforthepurchaseofusedvehiclesisveryscarcefromanysource.Thisparticularlyimpactsowner-operatorsandsmallerfleetsthatdonotgeneratethecashfollowtowarrantanewvehiclepurchase.

Table34-Problemsassociatedwithobtainingfinance

Problemsassociatedwithgettingfinancing

FromtheManufacturer

FromtheBank

PrivateLoan Leasing Rent

% % % % %Interestratetoohigh 46.2% 71.4% 100.0% 100.0% 100.0%Donotfinanceusedvehicles 23.1% 14.3% 0.0% 0.0% 0.0%Cannotproveadequateincome 19.2% 0.0% 0.0% 0.0% 0.0%LoanPeriodtooshort 7.7% 0.0% 0.0% 0.0% 0.0%Vehiclenottakenasguarantee 3.8% 0.0% 0.0% 0.0% 0.0%Notsufficientequity 0.0% 14.3% 0.0% 0.0% 0.0% Responses 26 7 3 3 1

Expectedpurchasesoverthecoming24months

Theintervieweeswerequestionedabouttheirplanstobuyandsellunitsoverthenext24months(Table35givestheirresponsesforhighwaytractorsandTable36forsemi-trailers).Overall,theintervieweesexpecttoreducetheirownershipin15percentforhighwaytractorsand11percentinsemi-trailers.However,therearedifferenttrendswithinsomecategories,lookingatthetwomainvocationalgroups:“Forhire”expectsanetincreaseof3percentinhighwaytractorsand2percentinsemi-trailerswhilst“IndustryandCommerce”arelookingataconsiderablereductioninbothof33and22percentrespectively.Thisisnotbecausetheyseetheirbusinessdeclining;itiscausedbyaconsiderableshifttowardstheuseof3PLcompaniestomanagetheircompletetransportationneeds.Oneadvantageofthisshift,isthattheywillavoidthelimitationonprivatefleetsthathaveforeigninvestmentoftransportingonlythosegoodsthataredirectlyrelatedtotheirbusinessneeds.Forexample,becauseofregulationaCocaColaownedtruckcannotcarrybottledwaterfromasistercompanyonitsreturntrip.However,a3PLownedtruckinCocaColaliveryisnotsubjecttotheserestrictionswhichgivesitagreatadvantageintransportefficiency.

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Table35-NumberofHighwayTractorsthatareexpectedtobeboughtorsoldoverthecoming24months

HighwayTractors

NumberofvehiclesForHire Industry&

CommerceConstruction&Mining

Agriculture Owner-Operator

Other Total

Plantobuy 2015&later 194 10 0 0 0 2 206 Plantosell 2015&later 0 0 0 0 0 0 02013-2014 60 480 0 0 0 0 5402009--2012 44 199 0 0 0 0 2432005-2008 15 18 0 0 0 0 332001-2004 13 7 0 0 1 0 211997-2000 6 32 0 0 0 0 381993-1996 0 3 0 0 0 0 31989-1992 3 0 0 0 0 0 31985-1988 0 0 0 0 0 0 01981-1984 0 0 0 0 1 0 11977-1980 0 0 0 0 0 0 01973-1976 0 0 0 0 0 0 01972&earlier 0 0 0 0 0 0 0TOTAL 141 739 0 0 2 0 882 Difference 53 -729 0 0 -2 2 -676 Numberowned 2005 2182 395 19 23 26 4650Percentchange 2.6% -33.4% 0.0% 0.0% -8.7% 7.7% -14.5%

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Table36-NumberofSemi-trailersthatareexpectedtobeboughtorsoldoverthecoming24months

Semi-trailers Numberofvehicles

ForHire

Industry&Commerce

Construction&Mining Agriculture Owner-

Operator Other Total

Plantobuy 2015&later 70 5 0 0 0 14 89 Plantosell 2015&later 0 0 0 0 0 0 02013-2014 0 0 0 0 0 0 02009--2012 0 0 0 0 0 0 02005-2008 0 809 0 0 0 0 8092001-2004 10 177 0 0 1 0 1881997-2000 0 19 0 0 0 0 191993-1996 5 42 0 0 0 0 471989-1992 0 12 0 0 0 0 121985-1988 0 2 0 0 0 0 21981-1984 0 1 0 0 0 0 11977-1980 2 0 0 0 0 0 21973-1976 0 0 0 0 0 0 01972&earlier 0 0 0 0 0 0 0TOTAL 17 1062 0 0 1 0 1080 Difference 53 -1057 0 0 -1 14 -991

Numberowned356

2 4895 644 24 27 24 9176Percentchange 1.5% -21.6% 0.0% 0.0% -3.7% 58.3% -10.8%

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Chapter5:-Tractor-trailerUsageandOperatingCosts

Thischaptercompilesinformationonthehowvarioustypesoffleetsdifferintermsofoperatingpatterns.Itlooksattractor-trailerusage,triplengthandfrequency.Itevaluatesfueleconomyandotheroperatingcosts,withdetailsbyageofvehicleandbyvocation.

HighwaytractorkilometersperyearIngeneralterms,theannualuseofhighwaytractorsisreducedastheirageincreases.Newunitsoperateonaveragearound140,000kmsperyear.Bythetimetheyare20yearsoldthisaverageannualusagehasdroppedtoaround100,000kmsandbythetimetheyare30yearsoldtheannualaverageusageisaround50,000kmsperyear.Thischangeinusageisbroughtaboutbychangesinownership.Theoverallaverageannualmileagepervehicleinthislatestcombinedsampleis131,000kms.IntheMacKaystudy(2015)theaverageannualmileagepervehiclewas128,000kms,whichis12percenthigherthantheaverageintheUSAatthattime.HighwaytractornumberoftripsandtriplengthIndustryandCommerce“IndustryandCommerce”fleetstendtorundailytripsof400to600kmswithnewervehiclesatthehighendofthisscaleandoldervehiclesrunningaround50percentlesstriplengths.Theytendtousehighwaytractorsofupto25yearsold,whilsttherearesomeoutliers.Whenthevehicleisnolongeraptfortheirroutes,theytendtogetsoldtoOwner-operators.Annualmileageforthesevehiclesstartsaround115,000kmsoverthefirst8yearsoflife,anddropstoaround65,000kmsover25years.ForHire“ForHire”fleetstendtooperatealmosthalfthenumberoftripspermonthcomparedto“IndustryandCommerce”fleetsandthisvarieslittlewiththeageofthevehicle.However,theaveragetriplengthdoesgetreducedasthehighwaytractorgrowsolderandispassedfromlargefleetstomediumandsmallerbrethren.Thenewerhighwaytractorsofupto6-8yearsoldin“ForHire”fleetstendtooperateinthelargefleetswithtriplengthsofaround1,500kms.Thesevehiclesthengetpassedtomediumfleetsthattendtorunonsecondaryormoregeographicallychallengingrouteswithanaveragetriplengthof800to900kms.Theoldestvehicles(ofaround30yearsold)tendtobeusedinlowmileage,feeder,andpick-upanddeliveryservice.Asaresult,highwaytractorsin“ForHire”fleetshaveannualmileagesthatstartaround135,000kmsperyear(whichisone-quarterhigherthanIndustryandCommerce)anddroptoone-tenthofthisvalueastheygetolder.WhentheygetabsorbedbyOwner-operators,theirusagetendstochangetofarfewerbutlongertripsgivingsimilarannualmileagesorlesskm.

ChapterHighlights

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Intervieweesinthisvocationreportedforvehiclesover15yearsold,routesof3to7tripspermonthgeneratingannualmileagesof35,000kmsFuelEconomyFueleconomyofhighwaytractorshasimprovedconsiderablyoverrecentyears.Nationwide,onaverage,tractor-trailerfueleconomyinnewunitsis42percentbetterthanin30-yearoldunits.ForHireFor“ForHire”fleetsthelatestsurveyshowsanaveragefueleconomyfora30-year-oldtruckof1.7km/Lcomparedwith2.6km/Lforanewunit.Notethatthetrueefficiencyimprovementisgreaterthanthesenumberssuggestbecausethenewunitstendtobeinlongertripswithhigherroadspeedsthantheirolderbrethren.Manyfleetscommentthatthisdifferenceinfuelconsumptionisalmostsufficienttocoverthemonthlypaymentagainstbuyinganewvehicle.IndustryandCommerceThe“IndustryandCommerce”vocationseessimilarfueleconomiesonoldtrucksthan“ForHire”butlessimprovementwithnewunitsmainlybecauseoftheincreasinguseofdoubles(orfull)withamaximumGVWof66.5tons(withahigherlimitof75.5tonsonroadtypes“ET”and“A”)comparedto38tonsforastandard“T3-S2”rigonclass“B”roads.Itisimportanttonotethatthefueleconomyperkgtransportedisconsiderablyhigherinadoubleconfiguration.Itisinterestingtonotetheimpactofthechangeindrivecycleonfueleconomyasvehiclesgetolderandgetpassedfromprincipalfreightroutestosecondaryorfeederoperationsinsmallfleetsandwithowner-operators.ThenormaldrivecycleinMexicoapplicabletomainrouteoperationgivesanexpectedfueleconomyof3.3km/L(forEUROIII,34–40tonsGCW)whilstthesamevehicleinalighterfeeder-operationdrivecyclewithlowerloadandlesshighwayoperationgivesanexpectedfueleconomyof4.2km/L.Inpractice,lowerfueleconomiesarereporteddueto(i)theuseofdoublesorfulls,(ii)maintenanceanddrivingpractices;and(ii)themoredifficultrouteconditionsonthesecondaryandfeederroutes.OperatingExpensesIncludingoperatorandfuel,at2017prices,expenditureperkilometerincreasesslightlyfromaround10.5pesos/kmoverthefirst6–8yearstoalmost12pesos/kmafter25yearsofuse.ExcludingOperatorandFuel,theFor-Hirefleetshavethelowestaveragecostperkilometer($3.4MN/km)whilstIndustryandCommerceshowanaverageexpenseof$7.5MN/km.Significantdifferencesintheexpensesbyvocationexist.The“ForHire”reportsspendingmorethan“IndustryandCommerce”inLicenses&taxes,andInsurance;andconsiderablylessinTollsandCorrectiveMaintenance.

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OperatingExpenses(cont)

Asapercentofoperatingcosts,excludingTruck/trailerleaseorpurchasepayments,fuelcostsinMexicoarehighestrepresenting57percentofthetotalexpenditure,whilstintheUSA,fuelrepresentsonly43percent.ThisispartiallyduetothehigherdriverwagesandbenefitsintheUSA*–whichaccountfor38percentascomparedto9percentinMexicoDatacollectedonin-usetractor-trailersinMexicoTheintervieweeswereaskedwhichagencycollectsinformationaboutvehiclesandtheiruse(km/year)inMexico.Theiroverallconclusionwassadlythatlittlesystematicdataiscollected.SCTdoesprocessvehicleregistrationdatabutusagedataonlycomesfromlimitedad-hocstudiescommissionedbythem,CANACAR,CANAPAT,ANTP(AsociaciónNacionaldeTransportePrivado)andSEMARNATintheir“TransporteLimpio”program.

Thelastquestionwasaboutthedatathatthefleetoroperatorregularlycollect.Interestingly,only36percentoftheintervieweesreportedkeepingregularrecordsandreportsonvehicleoperationandefficiency(seeTable79).Ofthedatacollected,fuelconsumptionpervehiclewasthemostcommonresponse,followedbyvehiclemaintenancerecordsandnumberoftripsandmileagepervehicle.

Note*Source“Barrierstotheadoptionoffuel-savingtechnologiesinthetruckingsector”ICCTJuly2017seehttp://www.theicct.org/sites/default/files/publications/HDV-fuel-saving-tech-barriers_ICCT-briefing_07072017_vF.pdf

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Theroleofthedifferenttypesoffleets

Theon-road,highwaytractor,freighttransportinMexicoisclearlydividedintotwosegments:

• Privatetransport–companiesthathavefleetstotransporttheproductsthattheymanufactureordistribute;and

• ForHire-fleetsthattransportgoodforothers

ArelativelynewmodalityinMexicoarethethird-partylogisticscompanies(3PL)whichprovideseamlesstransportservicestomanufacturersanddistributioncompanies,oftenwithtrucksandpersonnelintheclient’slivery.LogisticscompaniesarenotyetasprevalentinMexicoastheyareintheU.S.fortheyarestillgenerallyconsideredastooexpensivefortheMexicanmarketbuttheyarebeginningtoplayalargerpart,withyear-on-yeargrowthratesthatfarexceedtheaveragefortheMexicantruckingindustry.

Thetraditionaladvantagesofoutsourcingsupplychainmanagementtoa3PLleveragetheirhavingalargerfleetthantheclientcompanybyitselfwouldhave,whichresultsineconomyofscale,andbeingbusinessesthataretotallyfocusedontransport(whereastheclient’sfocusisonhiscoreproductionbusinesswheretransportisbutanecessarypart).Large3PLsalsoprovideflexibleandscalableservicesthataccommodateseasonalityandgrowth.However,evenfora3PLwithlimitedclients,therecanbesignificantadvantages:

• Ascanbeseeninalatersectionofthisstudy,ForHirefleets(whosebusinessistransport)tendtobemoreefficientthanprivatefleets’transportoperations

• Frees-upthecapitalrequirementofowningafleet,releasingvaluableequityandmanagementresources,andconvertingtransportintoavariablecost;and

• AbigthinginMexico,allowsfreighttobemoreeasilycarriedonboththeoutwardandreturnjourneytrips.

PrivatetransportinMexicoincompaniesthathaveforeigninvestment(equity)arenotallowedtotransportgoodsforothercompanies.Thismakesitdifficultforatractor-trailerthatisdeliveringgoodstoadistributioncenterorclient,toswing-byasupplier,orSisterCompanyandgetafullloadforthereturntrip.3PLsarenotsubjecttotheselimitations.

Whilstlargeprofessionallymanagedfleetsneedlittleornogovernmenthelpduetotheirfinancialmuscleandtheirdepthofknowledgeabouttheirownoperations,smallfleetsandowner-operatorsremainanimportantchallenge,particularlyfortheTransporteLimpioandsimilarprograms.

Theowner-operatorsandsmallfleets,representalargeportionoftheregisteredfleet,havetheoldestvehicles,andnotablylowerefficiencythantheirlargerbrethren.Aspreviouslymentionedtheytendtohaveconsiderablylowerannualmileagesandlowerloadfactors,operatingondifficultroutesthatarenotattractivetothelargerfleetsoronlocalfeederoperations.

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Owner-operatorsprovidetransportservicestotheclientswhodonotrequirecontrolssuchasISO900029;andwhopaycash.Theywilloftenchoosetheclientwhopayslessbutpaysfasterbecausemanyexistonacash-flowbasisandliquidityisessential.

Owner-operatorsprovidetransportforlow-valueloads(forexamplefororangesfromMeridatoMexicoCity)thatcannotaffordahighercostservice.Theseareloadsthatwillnevergotothelargecarrier,theywillalwaysgowithwhoeverprovidesthecheapestservice.

Owner-operatorsdonottypicallyparticipateinthemoreformalmarketthatlooksforawellconstitutedcompanythatoffersatrackingsystem,insurance,andalotoffactors,suchascertification,andtheassurancethatthedriverwillmotmesswiththeload.Therearemanyadvantagestohiringawell-establishedcompanyratherthananowner-operator;itisnotthesametransportingorangesasmoving,forexample,cyanide.

Moststakeholdersinterviewed,includinggovernmentagenciessuchastheSMAEMrecognizetheneedforimprovededucationandknowledgedistributiontothesesmalleroperators,toincreasetheirunderstandingofcost/benefitanalysisandotherbasicanalyticaltools.AccordingtointervieweeRafaelTapiaVelázquez,betterinformationandtrainingwouldallowthesmallerenterprisestobetterobservefactors,suchasenergyconsumption,thattheymaynotbecurrentlymonitoring.Transportprograms,includingbutnotlimitedtothescrappage&renewablescheme,wouldbenefitgreatlyfromsmallerenterprisesunderstandingtheprocessandbenefitsofsuchprograms.

Highwaytractorkilometersperyear

Theaveragevehicleusagebyageandvocationwasdeterminedfromfieldsurveysof179fleetsthatowned9601class8highwaytractors.TheresultsofthesesurveysareshowninTable37andFigure35.Theyareofcourselimitedbytheageofthevehiclesineachsample.Forexample,theGovernmentvocationsampledoesnotcontainanyvehiclesofbetween9and28yearsofuse.

Ingeneralterms(notvocationspecific)theannualuseofhighwaytractorsisreducedastheirageincreases(seeFigure35).Newunitsoperateonaveragearound140,000kmsperyear.Bythetimetheyare20yearsoldthisaverageannualusagehasdroppedtoaround100,000kmsandbythetimetheyare30yearsoldtheannualaverageusageisaround50,000kmsperyear.Aswewillseebyvocation,thischangeinusageisbroughtaboutbychangesinownership.

29ISO9000isasetofinternationalstandardsonqualitymanagementandqualityassurancedevelopedtohelpcompanieseffectivelydocumentthequalitysystemelementstobeimplementedtomaintainanefficientqualitysystem.Theyarenotspecifictoanyoneindustryandcanbeappliedtoorganizationsofanysize.

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Table37-AveragekmsbyageofvehiclebyVocation

Numberoffleets Yearsinuse Total 1-4 5-8 9-12 13-16 17-20 21-24 25-28 29-32 33-36 37-40 over40Owner/Oper 20 1 2 4 3 3 3 3 2 0 0 1ForHire 98 31 22 20 20 6 3 4 1 3 1 1Ind&Com 23 7 7 2 6 0 2 2 0 0 0 0Const&Min 12 2 2 4 5 1 0 0 0 0 0 0Agriculture 21 3 5 6 2 2 3 3 0 0 0 0Government 5 1 1 0 0 0 0 0 2 1 0 0Total 179 45 39 36 36 12 11 12 5 4 1 2 Numberofvehicles Yearsinuse Total 1-4 5-8 9-12 13-16 17-20 21-24 25-28 29-32 33-36 37-40 over40Owner/Oper 49 4 12 10 8 7 4 1 2 0 0 1ForHire 8489 3886 2921 1000 478 118 59 14 2 8 2 1Ind&Com 468 267 41 37 96 3 24 0 0 0 0 0Const&Min 206 101 23 38 38 5 1 0 0 0 0 0Agriculture 357 33 49 115 102 39 17 2 0 0 0 0Government 32 4 22 0 0 0 0 0 5 1 0 0Total 9601 4295 3068 1200 722 172 105 17 9 9 2 2 Averageannualkms Yearsinuse('000km) Total 1-4 5-8 9-12 13-16 17-20 21-24 25-28 29-32 33-36 37-40 over40Owner/Oper 100.2 180.0 155.0 124.2 70.0 100.0 49.1 9.0 46.7 0.0 0.0 72.0ForHire 133.3 143.0 122.6 135.9 131.6 88.4 73.6 52.0 19.2 66.4 19.2 19.2Ind&Com 126.7 135.3 110.9 148.9 122.6 0.0 70.0 0.0 0.0 0.0 0.0 0.0Const&Min 81.0 84.8 80.0 74.8 75.1 11.0 0.0 0.0 0.0 0.0 0.0 0.0Agriculture 126.1 134.7 123.8 97.1 125.0 190.0 128.8 89.0 0.0 0.0 0.0 0.0Government 72.1 75.6 75.6 0.0 0.0 0.0 0.0 0.0 57.6 54.0 0.0 0.0Total 131.2 141.1 122.0 130.5 125.8 108.1 80.1 53.8 46.6 65.0 19.2 45.6


Theoverallaverageannualmileagepervehicleinthiscombinedsampleis131,000kms.IntheMacKaystudy(2015)theaverageannualmileagepervehiclewas128,000kms,whichis12percenthigherthantheaverageintheUSA30.

30MacKayreportstheUS2015AverageAnnualKilometersperClass8vehicleas114,000km.

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Figure35-Averagekmsbyageofvehicle

Owner-operator

ForthevocationofOwner-operatorthecombinedsampleconsistedof49vehiclespertainingto20owners.Theseexhibitasharpdeclineinusagewithage(Figure36)withacharacteristic“saw-tooth”patternthatisthoughttoalignwithgeneralvehicleoverhaulataround15yearsand27yearsofage.ThisisreflectedinFigure20inChapter3whichshowsbymodelyearthefractionofvehiclesthathavetheoriginalun-overhauledengine.


Figure36-Owner/operator;Averagekmsbyageofvehicle

020406080

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020,00040,00060,00080,000100,000120,000140,000160,000180,000200,000

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BlueMarkersignifiesonly1fleet

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ForHireFleets

Thevocationwithmostfleetsandvehiclesinthissampleisthe“Forhire”category(98fleetswith8489highwaytractors).Thisalsoexhibitsasteadydeclineinusagewithage(Figure37)from143,000kmsperyearwhennewtoaround20,000kmsafter30yearsofservice.


Figure37-Forhire;Averagekmsbyageofvehicle

Industry&Commerce

Industry&Commercesimilarlyexhibitsanalmostconstantannualmileage—ofaround135,000kms--forthefirst15yearsofuse.Thissamplehasanadditionaldatapointat21to24yearsofusewherethereportedannualmileageishalf,ataround70,000kms.

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Figure38-Industry&Commerce;Averagekmsbyageofvehicle

Construction&Mining

TheConstruction&Miningpresenceinthefieldsampleissmallerconsistingof206highwaytractorsoperatedby12fleets.Ofthese,allexcept6unitswerebetween0and16yearsofagerunninganaverageofabout80,000kmsperyear(seeFigure39).

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Figure39-Construction&Mining;Averagekmsbyageofvehicle

Agriculture

TheAgriculturepresenceinthefieldsampleconsistsof357highwaytractorsoperatedby21fleets.Theseexhibitanaverageusageof126,000kmsperyear(seeFigure40),withthehighestusageforunitsof17-20yearsold(190,000kmsperyear).Thishighmileageaccordingtotheinterviewees,isduetothespecialconditionsofthisseasonalmarketwherethereisaveryhighdemandduringtheharvestseasonbutyear-roundcannotjustifyalargerdedicatedfleet,ornewervehicles.Forexample,Sinaloaisthecountry'slargestvegetableproducerandtheleadingUSAsupplieroftomatoesandotherfreshproduceinwinter.Itcurrentlytransports90%ofitsfreshvegetableexportsviaNogaleswiththeremaindertakingthenorthernlogisticcorridorfromMazatlántoTexas31.

Duringtheharvestseason,morethan200trailersperdayusethesameroutes;eitherthelinkfromSinaloatoNogaleswhichisadistanceis976kmwithanormaltransittimeof8hours,ortheMazatlántoTexasroutewhichis1200kmslongandusedtotake20hoursbutwiththenewhighwayshasbeenreducedto15hoursdrivingtime.HeretheyaredeliveredtointermediarieswhodistributethemintheUSA.Inseason,theseunitsstoponlyforloading/unloadingandaccumulateveryhighmileage.

31Source:ManuelTarriabaUrtuziástegui,Horticultivoseditionmarch13,2017,andGooglemaps.

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Figure40-Agriculture;Averagekmsbyageofvehicle

Government

TheGovernmentsamplesize(32highwaytractorsoperatedby5agencies)istoosmalltoprovidesignificantresultsbyageofvehicle.Onaverage,theseunitsoperatearound72,000kmsperyear(seeFigure41).

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Figure41--Government;Averagekmsbyageofvehicle

Highwaytractornumberoftripsandtriplength

Thefollowingfigures(Figure42andFigure43)andtables(Table38andTable39)illustratehowthedutycycleofhighwaytractorschanges,fordifferentvocations,byageofvehicle.“Industryandcommerce”fleetstendtorundailytripsof400to600kmswithnewervehiclesatthehighendofthisscaleandoldervehiclesrunningaround50percentlesstriplengths.Theytendtousehighwaytractorsofupto25yearsold(seeFigure26),whilsttherearesomeoutliers.Whenthevehicleisnolongeraptfortheirroutes,theytendtogetsoldtoOwner-operators.Annualmileageforthesevehiclesstartsataround115,000kmsoverthefirst8yearsoflife,anddropsgraduallytoaround65,000kmsafter25years.

“ForHire”fleetstendtooperatealmosthalfthenumberoftripspermonththan“IndustryandCommerce”fleetsandthisvarieslittlewiththeageofthevehicle.However,theaveragetriplengthdoesgetreducedasthehighwaytractorgrowsolderandispassedfromlargerfleetstomediumandsmallerbrethren.Thenewerhighwaytractorsofupto6-8yearsoldin“ForHire”fleetstendtooperateinthelargerfleetswithtriplengthsofaround1,500kms.Thesevehiclesthengetpassedtomediumfleetsthattendtorunonsecondaryormoretopographically,androadtraceandsurfacechallengingrouteswithanaveragetriplengthof800-900kms.Theoldestvehicles(ofaround30yearsold)tendtobeusedinlowmileage,feeder,andpick-upanddeliveryservice.Asaresult,highwaytractorsin“ForHire”fleetshaveannualmileagesthatstartaround135,000kmsperyear(whichisone-quarterhigher

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thanIndustryandCommerce)anddroptoone-tenthofthisvalueastheygetolder.WhentheygetabsorbedbyOwner-operators,theirusagetendstochangetofewerbutlongertrips,withoutdisruptingthistendencyforannualmileagestobereducedasthevehiclegetsolder.Intervieweesreportedforvehiclesover15yearsold,routesof3to7tripspermonthgeneratingannualmileagesof35,000orlesskm.

Figure42-Averagetriplength(kms)byageandvocation

Table38-Averagetriplength(kms)byageandvocation

HighwayTractors AverageTripLength



operator Other Total

2015&later 1,544 626 300 200 9892013-2014 1,366 676 300 1,200 200 8892009--2012 1,607 567 1,200 1,500 1,0252005-2008 896 566 900 1,200 874 7332001-2004 822 433 900 1,200 1,700 5881997-2000 878 441 900 7801993-1996 901 510 700 743 6801989-1992 875 1,000 9421985-1988 250 1,000 1,550 9871981-1984 610 610TOTAL 1,340 608 320 1,042 1,136 200 901

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Figure43-Averagenumberoftripspermonthbyageandvocation

Table39-Averagenumberoftripspermonthbyageandvocation

HighwayTractors

Tripspermonth ForHire Industry&Commerce



2015&later 14 28 28 28 212013-2014 16 28 28 8 28 232009--2012 15 31 8 10 242005-2008 21 28 7 8 12 242001-2004 16 28 7 8 4 231997-2000 14 28 5 171993-1996 10 21 4 7 151989-1992 12 18 151985-1988 10 18 3 161981-1984 10 10TOTAL 15 28 27 7 9 28 22

FuelEconomy

Datafromthesurveyresponsessuggeststhatfueleconomyofhighwaytractorshasimprovedconsiderably(seeFigure44andTable40).For“ForHire”fleetstheintervieweespresenteddatashowing

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anaveragefueleconomyfora30-year-oldtruckof1.7km/Lcomparedwith2.6km/Lforanewunit.Notethatthetrueefficiencyimprovementisgreaterthanthesenumberssuggestbecausethenewunitstendtobeinlongertripswithhigherroadspeedsthantheirolderbrethren.Manyfleetscommentthatthisdifferenceinfuelconsumptionisalmostsufficienttocoverthemonthlypaymentagainstbuyinganewvehicle.

The“IndustryandCommerce”vocationseessimilarfueleconomiesonoldtrucksto“ForHire”butlessimprovementwithnewunitsmainlybecauseoftheincreasinguseofdoubletrailers(orfull)withamaximumGVWof66.5tons(withahigherlimitof75.5tonsonroadtypes“ET”and“A”)comparedto38tonsforastandard“T3-S2”rigonclass“B”roads.Itisimportanttonotethatthefueleconomyperkgtransportedisconsiderablyhigherinadoubleconfiguration.

Figure44-Averagefueleconomykm/L)byageandvocation

1.01.21.41.61.82.02.22.42.62.83.0

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my(km

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Linear(ForHire) Linear(Industry&Commerce)

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Table40-Averagefueleconomykm/L)byageandvocation

HighwayTractors AverageFuelEconomy




2015andlater 2.62 1.97 1.40 2.70 2.182013-2014 2.57 1.93 1.40 2.10 2.70 2.132009--2012 2.51 1.95 2.10 2.342005-2008 2.34 1.95 1.91 2.10 2.11 2.132001-2004 2.35 1.90 1.91 2.10 2.00 2.051997-2000 2.17 1.68 1.50 2.051993-1996 1.94 1.31 2.00 2.00 1.631989-1992 1.70 1.75 1.731985-1988 1.70 1.70 1.70 1.701981-1984 1.45 1.45

Itisimportanttonote,additionally,theimpactofthechangeindrivecycleonfueleconomyasvehiclesgetolderandgetpassedfromtheprincipallonghaulfreightroutestosecondaryorfeederoperationsinsmallfleetsandwithowner-operators.Toillustratethepoint,thefueleconomyoftractor-trailercombinations(EUROIII,34–40tonsGCW)werecalculatedusingtheEuropeanCOPERT(version4.53)emissionsmodelassuminganambientmonthlymax/mintemperatureasperGuadalajara,noaltitudecompensationandnomileagedegradationunderthetwodifferentdrivecyclesshowninTable41.Thenormaldrivecycleapplicabletoprincipalrouteoperationgivesanexpectedfueleconomyof3.3km/Lwhilstthesamevehicleinalighterfeeder-operationdrivecyclewithlowerloadandlesshighwayoperationgivesanexpectedfueleconomyof4.2km/L.Inpractice,lowerfueleconomiesarereporteddueto(i)theuseofdoubletrailersorfulltrailers32,(ii)maintenanceanddrivingpractices;and(ii)themoretopographically,androadtraceandsurfacechallengingrouteconditionsonthesecondaryandfeederroutes.

Allthesefactorsaffectfuelconsumption:engineanddrivetrainmaintenancecanhaveadirectimpactonthespecificfueleconomywhereitemssuchasrestrictiveairfiltersorexhaustsystems,andpooratomizationoffuelintheengine’scylindersreducethepowerobtainedfromthefuelconsumed.Gooddrivingpractices,avoidingabruptchangesinspeed,maintainingthecorrectgear,andanticipatingroadconditionscanimprovefueleconomybysometimesmorethan30percent.Roadconditionsthatcausemorestoppingandstartingandaccelerationsalsohaveanegativeimpactonfueleconomy,asdoes

32AfulltrailerisatermusedinMexicoandtheUnitedStatesforafreighttrailersupportedbyfrontandrearaxlesandpulledbyadrawbar.Foratractor-trailercombinationthisisonlyapplicabletothesecondtrailerthatispulledbehindthesemi-trailerthatismountedonthetractor’sfifthwheel.

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changesinaltitude.Increasingtheloadedcombinedweightofthetractor-trailercombinationreducesvehiclefueleconomy,butinterestinglycanimprovethefuelconsumptionperton-kilometertransported.

Table41-Illustrativedrivecycleexamples

“NormalUse”considers50%loadOperation Average

Speed(kph)DrivingShare%

Urban 20 10%Rural 60 22.4%Highway 100 67.6%

“LightUse”considers10%loadOperation Average

Speed(kph)DrivingShare%

Urban 20 10%Rural 60 67.6%Highway 100 22.4%

Expectedfueleconomyof3.3km/L

Expectedfueleconomyof4.2km/L

Difference27%Source:Authorscalculations

Interestingly,theaveragefueleconomyofhighway-tractorshasdecreasedoverrecentyears.Figure45comparestheresultsofthe2011INECCstudywiththoseofthismorerecent2017(ICCT)studywhichshowsa12percentdecreaseinfueleconomyforthe“ForHire”vocationanda55percentdecreaseforIndustryandCommerce.Itispostulatedthatthisismainlyduetotheincreaseduseandloadingofdoublesandfulltrailers.In2011the“ForHire”fleetsincludedinthesurveyin2011used1.46trailerspertractorcomparedto1.78trailerspertractorfoundin2017.ForIndustryandCommerce,theusageoftrailersincreasedfrom2.01to2.24trailerspertractoroverthissixyearperiod(seeTable42)33.

33Inaddition,itisimportanttorecognizethatthe2017studyhasalimitedsizesample,andthatpartofthisapparentdifferencecouldbeduetodifferencesinthefleetsinterviewed.

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Source:TSTESfieldstudiesINECC(2011)andICCT(2017)

Figure45-FuelEconomyofHighwayTractorsbyvocationin2017vs2011

Table42-Ratiooftrailerspertractorinthe2011and2017studies

RatioTrailers/Tractors ForHireIndustry&Commerce

in2011 1.46 2.01in2017 1.78 2.24

Source:TSTESfieldstudiesINECC(2011)andICCT(2017);seefootnote33

FuelCost

Atthetimeofthe2011survey,thepumppriceofdieseltoallon-roadusersinMexicocostaround$9.56MN/L.Theaverageduringthe2017surveywas16.47MN/L;andincreaseof72percentin6years.

OperatingExpenses

Theoperatingexpensesforhighwaytractorsbyexpensecategoryandageofvehicleasgivenbythe44intervieweesareshownin,Figure46,Figure47,andTable43itcanbeseen(inFigure46)thatwhilsttheannualexpendituredropswithincreasingage(fromaround1.7millionpesosoverthefirst6-8yearsoflife)toaround1.0millionpesosafter20years),thisisdrivenprimarilybythereductioninannualmileage.Figure47infactshowsaslightincreaseinexpenditureperkilometerfromaround14pesos/kmoverthefirst6–8yearstoalmost16pesos/kmby15yearsofusewithareductionthereafter.Interestinglytheshiftofexpendituresbetweencategoriesshowsareductioninthecostoftheoperator

0

0.5

1

1.5

2

2.5

3

3.5


FuelEcono

my(km

/L)

FuelEconomyofHighwayTractorsbyvocationin2017vs2011

in2011 in2017

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andtollsbeingoffsetbyanincreaseinotherexpenseitems.Overall,fuelcostcomprises57percentofexpenditureattoday’sprices,(see

)followedbytolls(21percent)andoperator’ssalaryorfee(9percent).Notethatthecostofpurchasingthevehicleisnotincludedinthiscalculation.OtherexpenseitemsmentionedbytheintervieweesareshowninTable45.

Itisinterestingtonotethattheannualoperatingexpensesforthosefleetswhosebusinessistransportisingeneralsignificantlylowerthanforcompanieswhosebusinessissomethingelse(butusehighwaytractorsintheirbusiness).ExcludingOperatorandFuel,theFor-Hirefleetshavethelowestaveragecostperkilometer($3.4MN/km)whilstIndustryandCommerceshowanaverageexpenseof$7.5MN/km(seeTable44).Significantdifferencesintheexpensesbyvocationexist.The“ForHire”reportsspendingmorethan“IndustryandCommerce”inLicenses&taxes,andInsurance;andconsiderablylessinTollsandCorrectiveMaintenance.Intheauthor’sbestjudgement,thisisduetothedifferentnatureoftheoperationsandoftenduetotheowner’sorfleetmanager’sdirectlevelofinvolvementintheseoperations.

Figure46-TotalannualoperatingexpensesperunitforHighwayTractorsinpesos($MN)

0.0200.0400.0600.0800.01000.01200.01400.01600.01800.02000.0

2015&Later

2013-2014

2009- -2012

2005-2008

2001-2004

1997-2000

1993 -1996

1989-1992

1985 -1988 O

peratin

gcost(thou

sand

sofp

esos)

ModelYear

Totalannualoperatingcost($MN)

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Figure47-Totalperkmoperatingcost($MN/km)

Table43-OperatingExpensesforHighwayTractors(thousandsofpesos)

Fuel Tolls Opera

tor

MaintenanceLicenses,taxes

Insur-ance Tires Repair Total

Corrective

Preventative

2015ypost 962.5 427.1 176.9 30.9 29.8 54.0 47.0 25.3 21.0 1774.52013-2014 956.0 348.8 101.2 49.9 60.2 55.8 19.2 23.9 18.8 1633.82009--2012 1033.9 365.7 83.0 76.7 51.5 10.1 21.8 28.9 19.9 1691.52005-2008 810.4 337.9 109.1 76.6 40.4 26.9 20.9 36.9 20.2 1479.22001-2004 656.2 27.5 96.7 79.6 28.7 14.6 18.3 29.7 18.5 969.91997-2000 651.4 50.6 449.5 29.3 23.8 8.5 18.1 42.6 9.5 1283.41993-1996 612.0 24.5 66.0 57.2 10.8 16.5 18.0 14.9 9.0 828.81989-1992 821.3 35.3 83.1 8.1 5.0 31.2 6.5 14.3 9.2 1013.91985-1988 945.7 7.3 10.0 2.7 1.4 2.0 1.7 2.7 0.7 974.11981-1984 416.8 15.0 0.0 20.0 8.0 15.0 15.0 40.0 20.0 549.8Average2017 918.6 335.8 135.7 51.5 42.0 39.2 28.5 27.4 19.1 1597.9

Memo:Averagesfromthe2011INECCsurveyof180fleetswith2858highwaytractorsAverage2011 18.9 13.3 13.1 42.8

Note:lowoperatorexpenseonoldunitsreflectsthefactthattheownerisdrivinganddoesnotaccountforhistimeasanexpenseitem

0

2

4

6

8

10

12

14

2015&later

2013-2014

2009- -2012

2005-2008

2001-2004

1997-2000

1993 -1996

1989-1992

1985 -1988

1981 -1984

Varia

blecost($

MN/

km)

ModelYear

Totalvariablecostin$MN/km

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Figure48-Percentagedistributionofoperatingexpenses

Table44–DifferencesinOperatingExpensesforHighwayTractorsbyVocation(thousandsofpesos)

Transp IndComFuel Tolls 191.5 539.1Operator CorrectiveMaintenance 19.3 91.8PreventiveMaintenance 46.8 46.2Licenses,taxes 71.4 17.6Insurance 42.5 21.2Tires 32.1 28.4Repairs 19.4 22.7Total 422.9 767.0 Averagekms/yr 123,599 102,442$MN/km 3.4 7.5

57%

21% 9% 3%

3% 2%

2% 2%

1%

Averageannualoperatingcost($MN)

Fuel TollsOperator CorrectiveMaintenancePreventiveMaintenance Licenses,taxesInsurance Tires

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Table45-Otherexpenseitemsmentionedbytheinterviewees

OtherExpensesWheelalignmentandBalancingCredit/LoanpaymentsHighwayrescueafterbreakdownBatteriesParkingAdministrativeexpensesDiagnosticsoftwareTruckwashTankwashanddisinfectingInsuranceforsemi-trailersSatellitetracking

Datacollectedonin-usetractor-trailersinMexico

Theintervieweeswereaskedwhichagencycollectsinformationaboutvehiclesandtheiruse(km/year)inMexico.Theiroverallconclusionwassadlythatlittlesystematicevidenceiscollected.SCTdoesprocessvehicleregistrationdatabutusagedataonlycomesfromlimitedad-hocstudiescommissionedbySCT,CANACAR,CANAPAT,ANTP(AsociaciónNacionaldeTransportePrivado)andSEMARNATintheir“TransporteLimpio”program.

Althoughanumberofentitiesreportsomeoftheinformation,thereisnocentraldatabase.Accordingtomultipleinterviewees,includingtheMinistryoftheEnvironmentoftheStateofMexico(SMAEM),theentitywhoshouldhavesuchdatabaseistheMinistryofCommunicationsandTransport(SCT).CarlosGilJiménezofSCTassertedthatSCTdoeshaveasystemthatallowsthemtoseeeveryregisteredvehiclewithfederallicenseplates,however,asexpressedbytheDirectorofResearchonAirQualityandShort-livedClimaticContaminantsofINECC,onemustbewaryofduplicationofinformation.

PreliminaryobservationsperformedbyINECChasledtobelievethatSCT’sdatabaseiscloselylinkedtothesaleoftrucks,andthisrelationshiphasledtoduplicationasthetrucksgetregisteredatthesaleandthenatthelocalgovernmentlevel,whichthenreportstothefederallevel.Whetheritbethroughagovernmentprogramortaskedtoaministry,thereisaneedforincreasingtheinformationandknowledgeavailabletobothgovernmentandtransportenterprises.

Transportenterpriseshouldshareinformationregardingtheirfleet,butshouldalsogetinformationandaguaranteeofprivacyfromgovernmententities.AccordingtoSMAEM,whatprogramscurrentlylackisenoughmonitoring,andwiththat,“providingsoftwaresothatIcanknow,frommyoffice,iftheefficienciesthatyouarereportingareactuallytheonesthatareoccurring”.

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Accordingtotheauthoritiesinterviewed,therootofmanyoftheproblemsinthefreightsectorinMexico,intermsoforganization,isthelackofregulationandstandardization.Nooneentitycollectsinformationonthesizeandthecompositionofthefreightmarketorcarriers,sincethereisnoeffectivenation-wideregistry.Thisismademorecomplicatedbytheproblemsassociatedwithalargeinformalmarket.Thereisnoofficialregistryofhowmanyfreighttonsarebeingtransportedatthenationallevel.AsexpressedbyFranciscoJ.BarreraMartínez,“Wedonotevenhaveadatabaserobustenoughtosayifthereareactually500,000tractorscirculatingaroundthecountry,andofthose,howmanyarefromMexicoandhowmanyfromabroad”.Companiestendtomisreportandthereislittleefforttocarryoutobservationandmonitoring.Thelackofnormsandmonitoring,ultimatelyhampertheeffectivenessoftheTransporteLimpioprograms.

Thelastquestionwasaboutthecontrolsthatthefleetoroperatorregularlykeep.Interestinglyonly36percentoftheintervieweesreportedkeepingregularcontrolsandreportsonvehicleoperationandefficiency(seeTable46).Ofthecontrolsmentioned,fuelconsumptionpervehiclewasinfirstplace,followedbyvehiclemaintenancerecordsandnumberoftripsandmileagepervehicle.

Toafarlesserdegreewerementioned,operatingcostpervehicle,operators,logisticsinformation(particularlytonscarriedpertrip)andrecordsfromtheenginemanagementcomputerandGPS.

Table46-Whichcontrolsdofleetsregularlykeep?

Controls %Fuelconsumption 31%Maintenance 18%Trips&Mileagepervehicle 15%Totaloperatingcost 8%Operators 5%Logistics,Tonspertrip 5%Telemtry&GPS 5%Accidentsandsecurity 5%Engineoiloptimization 3%Vehiclespeed 3%Idletime 3%

Memo:thepercentageiswithrespecttothetotalsample

NationalEmissionsRegister(RENE)

TheGeneralLawofClimateChange(LGCC)waspublishedonJune6,2012,andcameintoforceinOctoberofthatyear.Itestablishedthecreationofvariouspublicpolicyinstruments,includingtheNationalRegisterofEmissions(RENE)anditsRegulations,withtheobjectiveofcompilingthenecessaryinformationontheemissionofGHGemissionsfromthedifferentproductivesectorsofthecountry.

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Allcompaniesinthefollowingsectorswithannualemissionsthatexceed25,000tCO2e(tonsofCO2equivalent)arerequiredtoreporttheirdirectandindirectemissions34:

• Energy• Industry• Transport• Agricultureandfisheries• Waste,and• TradeandServices.

Thisobligatorylawisaccompaniedbyavoluntaryregister(ProgramaGEIMéxico—seehttp://www.geimexico.org/)inwhichover120companiesareparticipating.

AmongsttheobjectivesofRENEistocreatearobustdatabaseofemissionsthatareverifiedeverythreeyears,andcertifiedtopromotetheinterchangeoncarbonbondsorsaleofcarboncertificates.

34Thegreenhousegasesorcompoundstobereportedare:carbondioxide,methane,nitrousoxide,blackcarbonorsoot,fluorinatedgases,sulfurhexafluoride,nitrogentrifluoride,halogenatedethers,halocarbons,mixturesofthesegasesandothergasesidentifiedbytheIPCCanddesignatedbySemarnat.

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Chapter6:-Tariffs,FreighttypeandLogistics

Thischaptercompilesinformationontheinteractionbetweentransport(ForHire)fleetsandtheirclients,lookingattariffnegotiations,fareincreasesandtripprogramming.

TariffNegotiationandIncreasesOnethirdofthesurveyedfleetshaveafixedcontractwiththeirclients;onethirdnegotiateeachtripandtheremainderhaveamixofboth--someclientswithfixedcontractsandothersnegotiatedpertrip.Ofthosewithanegotiatedcontract,mostnegotiatetariffincreasesyearlybasedonthe12-monthpreviousinflation,particularlyinthecostofdiesel.Somesaidthatthisnegotiationisusuallybasedontariffschargedbyotherfleets.21percentmentionedthattheycurrentlynegotiatetariffsonapertripbasisduetotheextraordinaryincreasesinfuelcosts.TypeandSourceofFreightshipmentsWhilstbulkfreightformsanimportantpartforAgriculture(50percent)Construction&Mining(40percent)andOwner-operator(49percent),only13percentofthe“ForHire”and8percentof“IndustryandCommerce”usethismode.Mostofthe“IndustryandCommerce”freight,amongsttheinterviewees,ispalletized(70percent)followerbycardboardboxes(20percent).Inthe“ForHire”vocationthemostcommonloadismixedfreight(37percent)followedbypalletized(19percent).Thesourceoftheshipmentforthe“ForHire”fleetsisprimarilytraditionalclients(55percent)andfixedcontractagreements(16percent)althoughfreighthandlersandindependentlogisticscompaniescurrentlyrepresent19percentandaregrowingfast.Forthe“IndustryandCommercevocation,40percentoffreightshipmentsoriginateinthesamecompanyand30percentfromtraditionalsuppliers.Freightconsolidatorscurrentlyhavea20percentshareoffreightorigins,amongsttheinterviewees,inthisvocation.VehicleloadingandschedulingAsfarasvehicleloadingisconcerned,forthe“Industryandcommerce”vocation,50percentoftripsarelimitedbyweight,25percentlimitedbyvolume,andfortheremaining25percent,theloadaverages33percentofmaxloadandaround67percentofmaxvolume.

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TariffNegotiationandIncreases

Theinterviewswereaskedhowtheynormallyagreecontractswiththeirclients.Theresponsefellintothreesimilarlydistributedcategories.Onethirdhaveapre-negotiatedtariffperton-kmorpertripwiththeirclients;onethirdnegotiateeachtripandtheremainderhaveamixofboth--someclientswithfixedcontractsandothersnegotiatedpertrip(seeTable47).

Mostoftheinterviewees(64percent)negotiatetariffincreasesyearly,basedontheprevious12-monthinflation,particularlyinthecostofdiesel.Somesaidthatthisnegotiationwasbasedontariffschargedbyotherfleets.21percentmentionedthattheycurrentlynegotiatetariffsonapertripbasisduetotheextraordinaryincreasesinfuelcosts,whilstlowerpercentagesnegotiateevery6months(9percent);every3monthsormonthly(3percenteach).SeeTable48).

In“ForHire”vocationonly37percentoftripsarelimitedbyweight,40percentlimitedbyvolume,andfortheremaining23percent,theloadaverages51percentofmaxloadandaround49percentofmaxvolume.Thewaytripsarescheduledalsovariesbyvocation.Accordingtotheinterviewees,for“IndustryandCommerce”in60percentofcasestheshipmentwaitsuntiltheloadisfilled,withtheremaining40percentleavingontimewith,orwithoutthecompleteshipment.Inthe“ForHire”vocationitistheotherwayaround:38percentofthetimetheshipmentwaitsuntiltheloadisfilled,withtheremaining62percentleavingontimewith,orwithoutthecompleteshipment.TripprogrammingInbothvocations,mostofthetrips(56-59percent)aredirectlyfromthesuppliertotheclient.However,31percentof“IndustryandCommerce”vehicletripsarefromthesuppliertoawarehouseforreshipment,whilst26percentof“ForHire”tripsarefromthewarehousetotheendclient.Whenaskedwhodefinestheexactrouteforthetrip,45percentoftheintervieweessaiditistheclient’sdecision,45percentsaiditisonlythetransportcompanywhodecides,withtheremainder(10percent)reportingitasajointdecision.Fleetmembershipofassociations/confederationsOverhalfoftheintervieweeshaveoneormoremembershipswithassociations/confederations/transportorganizations.Ofthese,themostmentionedwasCANACAR(46percent),followedbyANTP(10percent)andCONATRAM(8percent).Intotal15associationswerementionedbytheinterviewees.

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Table47-TariffNegotiation

%Theyhavefixedcontractswithclients 32%Theynegotiatecontractsforeachtrip 32%Bothoftheabove:someclientswithfixedcontractsandothersnegotiatedpertrip 35%

Table48-FrequencyofTariffIncreases

%Annual 64%6month 9%3month 3%monthly 3%pertrip 21%

Manyofthetransportcompaniesinterviewedexpressedthatthecontractsbetweentransportcompaniesandtheirclientsareverymuchinfavorofthelatterbecause“ifyouarrivelate,youarepenalized,ifyouarerobbed,worse,andifyoucrash,youpay.Unfortunately,thecontractisnormallywrittenupbytheclientandwejustsignit”.

Transportcompanies,asanyotherservice,mustincreasethepricesfromtimetotimeasthecostsofoperationgoupandasthepriceofdieselchanges.Ifdieselweretoincrease6percent,atransportcompanymaylooktoincreasethepriceoftheservicebyasimilarpercentage(sincefuelaccountsforapproximately60percentoftheircosts.However,manytimes,theincreaseinoperationcostsarenotfullyreflectedintherenegotiatedcontracts,forcingcompaniestolookforcost-savingmeasures.Accordingtomultipleinterviewees,thedangeroflosingclientsoverpriceincreaseishigh.Clientsmaylooktonegotiatelowerfreightincreasesbyofferinghighervolumesofcargo,however,ForHirecompanies,andparticularlyowner-operators,knowthatiftheydon’taccepttheterms,theclientwillcontractaproviderwithalowerquote.

TypeandSourceofFreightshipments

Thetypeofcargomovedbycompanieslargelydependsonthevocattiontheyparticipatein.BulkfreightispredominantinAgriculture(50percent)Construction&Mining(40percent)andOwner-operator(49percent),Forproduct-orientedcompanieslikethe"IndustryandCommerce",thetypeofcargoisdominatedbypalletizedandcardboardboxes;whereasthemixedcargoplaysamoreprominentroleinthe"ForHire"caregory,reflectiungthemorediversifiuedactivityforthistypeofcarriers.

Thesourceoftheshipmentalsovariesbyvocation.The“ForHire”fleetsprimarilypick-upfromwhattheyconsidertobetheirtraditionalclients(55percent)beingthosethattheyhaveservedforanumberofyears.Fleetsclassifyseperatlythefixedcontractagreements(16percent)thattheyhavenegotiated

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andwonfromotherclientsandthebusinessobtainedfromfreighthandlersandindependentlogisticscompanieswhichcurrentlyrepresents19percentofshipmentsandisgrowingfast(seeFigure50).

Forthe“IndustryandCommercevocation,40percentoffreightshipmentsoriginateinthesamecompanyand30percentfromtraditionalsuppliers.Freightconsolidatorscurrentlyhavea20percentshareoffreightorigins,amongsttheinterviewees,inthisvocation.

Figure49-Typeoffreightbyvocation

Figure50-SourceofFreight

0% 10% 20% 30% 40% 50% 60% 70% 80%

BulkRetailPackaging

PalletizedBundles(woodetc)

ContainersCardboardboxes

Wood/plasticboxesHeavyequipment

MixedOther

TypeofFreight


0% 10% 20% 30% 40% 50% 60%

SameCompany

Consolidator

Freighthandler

IndependentLogisitcscompany

Traditionalclients

Fixedcontracts

SourceofFreight

Industry&Commerce ForHire

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Vehicleloadingandscheduling

Inthe“Industryandcommerce”vocation,freightshipmentisbutonestepintheirproductiveprocessandthisgreatercontrolallowsamorecompleteuuseofthefreightcapacity.Forthisvocation,50percentoftripsarelimitedbyweight,25percentlimitedbyvolume,andfortheremaining25percent,theloadaverages33ofmaxloadwhilstthevolumeisaround67percentofmaxvolume(seeFigure51).Additionally,accordingtotheinterviewees,in60percentofcasestheshipmentwaitsuntiltheloadisfilled,withtheremaining40percentleavingontimewith,orwithoutthecompleteshipment(seeFigure52).

Inthe“ForHire”vocationtheconverseistrue:38percentofthetimetheshipmentwaitsuntiltheloadisfilled,withtheremaining62percentleavingontimewith,orwithoutthecompleteshipment.Thisresultsinloweraverageloading.Hereonly37percentoftripsarelimitedbyweight,40percentlimitedbyvolume,andfortheremaining23percent,theloadaverages51ofmaxloadwhilstthevolumeisaround49percentofmaxvolume

Figure51-LoadingofVehicle

0% 10% 20% 30% 40% 50% 60% 70% 80%

Freightlimitedbyweight

Freightlimitedbyvolume

Notweightorvolume

IfNotweightorvolume

percentmaxload

percentmaxvolume

LoadingofVehicle


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Figure52-Tripscheduling

Logistics

Inbothvocations,mostofthetrips(56-59percent)aredirectlyfromthesuppliertotheclient.However,31percentof“IndustryandCommerce”vehicletripsarefromthesuppliertoawarehouseforreshipment,whilst26percentof“ForHire”tripsarefromthewarehousetotheendclient(seeFigure53).

ForHirefleetsinterviewedsaidtohavenoticedastrongtrendtowardsanincreasingnumberofdistributioncenters,mainlyduetocargoregulationsandgrowthoftheurbanareas.Itisincreasinglydifficulttohaulthroughdenselypopulatedareas.Therefore,freightcompaniesfindthemselvesdividingthecargointosmallerquantitiesandvehiclesastheyapproachtheurbancores.Asonetransportcompanynoted“ItwillbeprogressivelymoredifficulttoenterMexicoCitywithabulkcarrierorgondola.Itisverydifficult,becausetheclientdoesnothavetheinfrastructuretoreceiveatruckofsuchdimensions.Thisforcesthefleettoconsiderdeliveringsplitloadsonsmallertrucks.However,itisnotalwayseasytoreachadistributioncenter,unload,dispatchthatproduct,andthenstartdistributingitonasmallervehicle,becausethiscanprovokelossofmerchandise,increasedpollution,andlossoftime.Owner-operatorsoftenoperatewith“consolidatedloads”,thereforetheroleoftheirfleetintheprocessisslightlydifferent.Unlikebiggerfleets,Owner-operatorstendnottodirectlyhaulproductstothefinaldestinationorintodistributioncenters.Thesmallerfleetscollectproductsusingsmall,oldtruckswhichtheyusefortheshorttripstotheconsolidationcenter.Onceintheconsolidationcenter,theproductsaretransferredtothelargetransportenterprises,whothenproceedtohaultheproductsinlargetruckstothedistributioncenters.

0% 10% 20% 30% 40% 50% 60% 70%

Leavesontimew/wofullload

Waitstofillload

Tripscheduling


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Figure53-Tripprogramming

Whenaskedwhodefinestheexactrouteforthetrip,45percentoftheintervieweessaiditistheclient’sdecision,45percentsaiditisonlythetransportcompanywhodecides,withtheremainder(10percent)reportingitasajointdecision(seeTable49).Theinternalareasofthetransportcompanyinvolvedinmakingthisdecisionareindescendingorderofincidence;Operations,Sales&marketing,LogisticsandShipping.However,theexactdeparturetimeismoreoftendefinedbytheclient(in62percentofthecases)andverylittlejointdecisionprocessisusedhere.

Table49-Whodefinestheexactrouteanddeparturetime

Whodefinestheexactroute

Whodefinestheexactdeparturetime

% %Client 45% 62%Transportcompany 45% 36%Bothtogether 10% 2%

Fleetmembershipofassociations/confederations

Fifty-fivepercentoftheintervieweeshaveoneormoremembershipswithassociations/confederations/transportorganizations.Ofthese,themostmentionedwasCANACAR(46percent),followedbyANTP(10percent)andCONATRAM(8percent).Intotal15associationswerementionedbytheinterviewees(seeTable50).

0% 10% 20% 30% 40% 50% 60% 70%

DirectRoutesuppliertoclient

SuppliertoWarehouseforreshipment

Consolidatedfreight

Warehousetosoleclient

Tripprogramming


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Table50-Membershipswithassociations/confederations/transportorganizations

Associations/confederations/transportorganizations %CANACAR CameraNacionaldelAutotransportedeCarga 46%ANTP AsociaciónNacionaldelTransportePrivado 10%CONATRAM ConfederaciónNacionaldeTransportistasMexicanos 8%ANIQ AsociaciónNacionaldelaIndustriaQuímica 5%CONCAMIN ConfederacióndeCámarasIndustriales 5%AMMPAC AsociaciónMexicanadeMensajeríayPaqueteríaA.C. 3%BASC BusinessAllianceforSecureCommerce 3%CANACINTRA CámaraNacionaldelaIndustriadeTransformación 3%CANACO LaCámaraNacionaldeComercio,ServiciosyTurismo 3%CCE ConsejoCoordinadorEmpresarial 3%

CESPEDES

ConsejoEmpresarialparaelDesarrolloSostenible,WBCSDporsussiglaseninglés(WorldBusinessCouncilforSustainableDevelopment) 3%

C-TPAT TheCustoms-TradePartnershipAgainstTerrorism 3%

CAINTRAComitédeTransportedelaCámaradelaIndustriadeTransformacióndeNuevoLeón 3%

CCNN-TTComitéConsultivoNacionaldeNormalizacióndeTransporteTerrestre 3%

TMCdeMéxico TechonologyandMaintenanceCouncilMexico 3%

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Chapter7:-InstitutionalandRegulatoryFramework

Thischaptercompilesinformationontheinstitutionalandregulatoryframeworkthatsurroundson-roadfreighttransportinMexico.

ImpactofDeregulation

CommercialfreighttransportinMexicowasderegulatedbetween1989and1993,withamarketorientedapproachadoptedovertheprevioussystemoflicensingeachoperatortoprovidefreight

RegulationandenforcementCommercialfreighttransportinMexicowasderegulatedbetween1989and1993.Thisderegulationwascomplimentedbycertainrestrictionsandrequirementsprovidingsufficientbarrierstoentrytoensurefinancialandsafetystandards.Manynewoperatorsenteredthemarketinthe‘90sandaWorldBankcasestudyfoundthatwithin5yearsroadtransportpriceshadfallenby23percentinmainlythelowerquality-of-servicesegments,whichtendedtobetheowner-operatorswhoshippedlowervalue,highvolumeproducts,whilstthepricethatcustomersshippinghighervalueandtimesensitivegoodswerewillingtopaywasfoundnottohavefallenbymuch.TheregulatorofroadtransportationistheSCT,throughtheGeneralDirectionofFederalRoadTransport(DGAF)through4federallawsandseveralofficialstandards(NOM).SCTtogetherwiththepolicealsohavetheresponsibilityforenforcement.Policiesthateffecton-roadtransport(currentandfuture)Bothprivateandpublicsectors,concurthatmanycurrentpoliciesandprogramdonotgothelengthsneededtoproducemeaningfulimpact.Theyagreethatnewlawsornormsshouldbeimplementedtolimittheageofthevehiclesthatcirculateonfederalroadsandpromoteefficiencyintheindustryandthegrowthofcleanfreight.Opportunitiesincludeprogramsandpoliciesthat:

• encouragechangesintheapproachtovehiclemaintenancepolicies,• allowSociallyResponsibleCompaniestohaveacompetitiveadvantageintermsof

businessopportunities• promotecomprehensivefleetmanagementsystems• helpestablishsystematicplanningandcontrolofroutesandincreaseintegration

ofthetransportfleetintothesupplychain;and• Assistintraining,motivationandcontinuousretentionofstaff

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services.Thisderegulationwascomplimentedbycertainrestrictionsandrequirementsprovidingsufficientbarrierstoentrytoensurefinancialandsafetystandards.

Manynewoperatorsenteredthemarketin1990andaWorldBankcasestudyfoundthatwithin5yearsroadtransportpricesfellby23percent.35Thegreatestdeclinesoccurredinthelowerquality-of-servicesegments,commonlyservedbyowner-operators,whoshippedlowervalueandhighvolumeproducts.Meanwhile,customers’willingnesstopayforshippinghighervalueandtime-sensitivegoodsdidnotfallasmuch.

PresentRegulation

TheregulatorofroadtransportationisSCT,throughtheGeneralDirectionofFederalRoadTransport(DGAF).Thelegalframeworkconsistsprincipallyofthefollowingregulations36:

• FederalLawonRoads,BridgesandMotorizedTransport(LeyFederaldeCamionos,PuentesyAutotransporteFederal,LCPAF)

• LawofGeneralCommunicationRoutes(LeyGeneraldeViasdeCommunicacion,LGVC)• LawofPublic-PrivateAssociations(LeydeAsociacionesPublicoPrividas,LAPP)• FederalLawtoControlChemicalsPrecursors,EssentialChemicalProductsandMachinesto

ElaborateCapsules,PillsandTablets(LeyFederalparaelControldePrecursoresQuimicos,ProductosQuímicosEsencialesyMáquinasparaElaborarCápsulas,TabletasyComprimidos,LGCPQ)

Someoftheselawsaresupportedbyspecificby-lawsandNOMs.Themostimportantofthesespecifyvehicledimensionspermittedtooperateandvehicleequipmentrequirements.

TheOECDreviewofRegulationofFreightTransportinMexico(2017)highlightedcertaingapsintheregulations,themostnotablebeinglackofdrivingandresttimeregulationstoavoiddriverfatigue.

RegulationsregardingthetypeandminimumstandardofvehiclepermittedtobeimportedandfirstregisteredinMexicoarealsosetoutintheNOMs.ThelargenumberofsecondhandimportedvehiclesmakestheapplicationandenforcementofthesafetyandenvironmentalstandardssetoutintheNOMSparticularlyimportant.

NOM-044ofSEMARNATestablishesthemaximumpermissiblelimitsregardingvehicleemissions.Thisregulationiscurrentlyunderrevision,withtheforeseenimprovementsinfuelqualityallowingmorestringentemissionsstandardstobeapplied.

35Source:Dutz,HayriandIbarra(2000),RegulatoryReform,CompetitionandInnovation:ACaseStudyoftheMexicanNationalCompetitionAgencyRoadFreightIndustry,https://openknowledge.worldbank.org/bitstream/handle/10986/22187/WPS2318.pdf?sequence=2&isAllowed=y36ReviewoftheRegulationofFreightTransportinMexico,OECD2017

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RequiredDocumentationandapplicablestandards

FreighttransportinMexicorequirestheoperator/vehicletohaveanumberofdocumentsinorder.

Operator

1. FederaldrivingLicense;normallyType“B”orType“E”forhazardousfreight.2. ProofofPsychophysicalAptitude,(current).3. Non-penalbackgroundcheck4. Logofhoursofserviceofthedriver.(thisisarequirementthatwasnotmentionedbythe

interviewees)

AllVehicles

1. Validcirculationcardforhighwaytractor.2. LicensePlatesandstickerforhighwaytractor.3. ThirdPartyDamageInsurancePolicy,(CivilLiabilityInsurancefor19,000daysofMinimumwage

inforceintheFederalDistrict.ThisequatestoapproximatelyUS$85,000)4. Certificateoflowemissionofpollutants,inforce.5. Certificateofphysicalandmechanicalconditions(IncompliancewithNOM-068-SCT-2-2000.6. Validcirculationcardforthesemi-trailerandthetrailer.7. MetalidentificationplateissuedbytheSCTforthesemi-trailerandthetrailer8. Permitsforconnectivityroutes(betweenhighwaysofahigherweightclass9. Permitsforlocaloperation,toentercitieslikeCelaya,Aguascalientes,Guadalajara10. Permitstooperateinrestrictedzones

Additionalrequirementsforhazardousfreight

11. Ecologicaldamageinsurancepolicy,(Environmentaldamageinsurancefor$900,000.00ThisequatestoapproximatelyUS$50,000)).

12. Documentofshipmentofthetransportedproduct.13. Formatof"Emergencytransportationinformation",indicatingtheactionstobetakeninthe

eventofanaccidentoccurring,accordingtothehazardousmaterialorwasteconcerned.14. Dailytechnicalvisualinspectionformatoftheunit.15. Manifestofdeliverytransportandreception,forthecaseoftransportationofhazardouswaste,

issuedbytheSecretariatofSocialDevelopment16. Authorizationforthecaseofimportandexportofhazardousmaterials,17. Manifestforcasesofspillsofhazardouswastebyaccident.18. Documentalproofoftankcleaning.Cleaningisonlyobligatoryforreasonsofincompatibilityof

theproductstobetransported.19. SignageindicatingtheUnitedNationsnumberofthetransportedproduct,aswellasthe

classificationoftheproduct.

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20. Emergencytelephonesincaseofaccidentand/orspill:SETIQ:01-800-00-214-00,inTheMexicanRepublic,55591588,fortheCityofMexicoandMetropolitanArea.CENACOM:01-800-00-413-00,intheMexicanRepublic.5550-1496or5550-1552,fortheCityofMexicoandMetropolitanArea.

21. Emergencyequipment(medicinecabinet,extinguishersandtheoneindicatedintheemergencysheet).

MainStandardsandregulationsthatshouldbemetbytransportvehicles

NOM-012-SCT-2: Weightandmaximumdimensionsforvehiclesthattransitinfederalhighways

Table51-WeightandDimensions

Sourc:SCTNote:“ETandA+”.-ThemaximumgrossvehicleweightauthorizedforvehiclesandvehicleconfigurationsmaybeincreasedwhentravelingonETandAroadswithnoconnectivity.NA-NotAuthorized

NOM-068-SCT-2-2014:Physical-mechanicalandsafetyinspectionofvehicles.Establishesthephysicalandmechanicalsafetyrequirementsforvehicles,whilstNOM-035setsouttherequirementsfortrailers,semi-trailersandconverters.

NOM-040-SCT-2:Forthetransportofindivisibleobjects,ofgreatweightand/orvolumebyroadsandbridgesoffederaljurisdiction.

NOM-045-semarnat-2006:Vehiclesincirculationthatusedieselasfuel.Maximumpermissiblelimitsofopacity,testprocedureandtechnicalcharacteristicsofthemeasuringequipment.

NOM-EM-167-Semarnat-2016:EstablishesemissionlevelsofpollutantsformotorvehiclescirculatinginMexicoCity,Hidalgo,StateofMexico,Morelos,PueblaandTlaxcala;Thetestmethodsforthecertificationofsaidlevelsandthespecificationsoftheequipmentusedforsuchcertification.

Enforcement:HeavyvehiclelicensingandoperatingregulationscomplianceistheresponsibilityofpoliceandSCTinspectors.Complianceactivitiesincludesroad-checksandvisitstocompanies.Thereare70roadsideweighingstationstotestforvehicleoverloadingnationally.

ET&A+ ET&A B C D

MaxGCW(t) 46.5 41.5 38.0 33.5 NAMaxLength(m) 20.8 18.5 NAMaxGCW(t) 54.0 48.0 45.5 40.0 NAMaxLength(m) 20.8 18.5 NAMaxGCW(t) 75.5 66.5 66.0 NA NAMaxLength(m) 28.5 NA NA

T3-S3

T3-S2-R4

23.0

31.0

5 18

6 22

9 34

Numberofaxles

Numberoftires

VehicleClassification

RoadClassificationConfiguration

23.0T3-S2

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On-roadtransportpolicies(currentandfuture)

Interviewees,fromprivateandpublicsectors,concurthatmanycurrentpoliciesandprogramsfailtoproduceameaningfulimpact.AsexpressedbyJudithTrujilloMachadofromSEMARNAT,“forseveralyearswehavebeenawarethatwemustimplementsometypeofnewlawsornorms,suchaslimitingtheageofthevehiclesthatcirculateonfederalroads.However,thishasnotgainedanytraction.Currentfinancing,scrapping,andotherprogramsarenotdoingenough”.Anideaproposed,withsupportfrommultipletransportfleetsinterviewed,beyondrecognizingcleanfleetswithsomekindofcertificate,istorewardsuchfleetsbyprovidingthemwithcompetitiveadvantages.Onepossiblebenefitcouldbepermittingaccesstocertainurbanmarketsonlytothosefleetswhocomplywithenvironmentalstandards.Limiting‘dirty’fleets’accessintourbancenterswouldbeatransformativedriverforenterprisestochangepracticesandadoptcleanertechnologies.

Anotheropportunityforpolicyimprovementmentionedbyintervieweesistheincreaseofsomesubsidiesandthereductionofothersaffectingthesectornegatively.Accordingtoforeigninvestmentlaws,foreigncompaniescannothaulinter-statefreightinMexico.ThisismeanttoprotecttheMexicanfreightsectorfrombeingover-runbythefinancialstrengthofAmericantransportenterprises.However,accordingtomultipleinterviewees,thelawisredactedinsuchwaythatithampersMexicanfleets.ThelawstatesthatMexicancompanieswithforeigninvestment(privatetransportcompanies)mayonlyhaultheirownmerchandise.Theoutcomeofsuchnormisthatoncethefleethasunloadeditsmerchandise,thereturntripisdonewithanemptytruck,sinceitcanonlyhaulitsownproducts.Thereisasubsidyattachedtothisnorm,essentiallypayingprivatetransportenterprisestoreturnempty.ProfessionalcompaniesinMexicocannotdedicatepartoftheirresourcestofederalpublictransport,becausethelawispoorlyworded.AccordingtoIng.AlexTheissenLongofFEMSALogistics“Thesubsidythatexistsallowsyoutoremainmediocre,sinceyougetpaidforit.Itisasubsidythatmustdisappearbecause,ontopofeverything,itgeneratesfreepollution”.Thissituationiscausingexplosivegrowthamongst3PLsasawayaroundthislaw.Byshiftingtheirfleettoa3PL,CocaColasaidthattheycannowcarrybottledwaterfromasistercompanyontheirreturntrips,somethingthattheyhadbeenrestrictedfromdoing.Allowingprivatecompaniestohaulfreightfromotherprivatecompaniesonreturntripscouldbeacost-effectiveandefficiency-inducingmeasure.Anotherpolicythatrequiresrevision,basedonthecommentsbythetransportenterprisesinterviewed,isthecertificationoftank-truck-washingstations.Thecostassociatedwithcomplyingwiththestandardsnecessaryforcertification,maketruck-washingstationseconomicallyunsustainable.Thecostsresultinhavingfewcertifiedwashingstationswhichinturnleadsininefficienciesintheserviceduetodelays.Asoneofthetransportersstated“thankfully,noonehasbeenabletofullycomplywithalltherequirements.Ifsomeoneweretobeableto,weallhavetobecareful.Becauseofthatone,wewouldallgetfinedaheftyamount,whilestillnotbeabletocomplyourselves”.Althoughthegoalofthepolicyultimatelyistoincreasethestandardinthetransportofdelicatecargosuchascomestibles,thecurrentpolicyisprovingtobetoocostly.

Apolicyproposedbytheinterviewees,inthiscaseINECC,istoexemptenterprisesparticipatinginprogramssuchasTransporteLimpiofromhavingtogothroughvehicleemissionstesting.Regardlessof

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thetypesofpoliciesthatneedtobeimplemented,aspartofanyfuturenorms,theremustbebettermonitoringandmoreprofessional,constantreportingfromtransportenterprises,somethingtheyarewillingtodoiftheinformationiskeptconfidentialandthereisincreasedsupportfromthegovernment.

Opportunitiesforapolicyframeworktopromotethegrowthofcleanfreight

WhenquestionontheneedsandopportunitiesforapolicyframeworktopromotethegrowthofcleanfreightinMexico,transportfleetsofvaryingsizesagreedonthefollowing:

1. Governmententitieswouldbenefitfromencouragingchangesintheapproachtovehiclemaintenancepolicies,encouragingcompaniestowardspreventiveandpredictivepractices.Thisisaproblemspeciallyamongsmallertransportfleetsasmanytimestheylackfinancialcapabilityorforesighttoseethebenefitsofpropermaintenance.ThisshiftinfleetmaintenancepracticesarepartofwhatSEMARNATcalltheprofessionalizationoftransportfleets.AccordingtothedeputydirectorofthetransportsectoratSEMARNAT,“Thereisstillalaginthiswholeissueoftheprofessionalizationofcompanies.Ifwestarttodoit,wewillhavemanybenefits,becausethathasadirecteffectonaspectsfromfuelconsumptiontousingandmaintainingthecorrectpartsofthetrucksaccordingtotheiruse”.

2. ThegovernmentcouldalsocreatepoliciesthatallowSociallyResponsibleCompaniestohaveacompetitiveadvantageintermsofbusinessopportunities.Everyentityintervieweddeclaredthatthecurrentincentiveswerenotenoughandthatonlymore,newer,andmoretangibleincentiveswillbringfleetsonboardcleantransportprograms.Onthetopic,SMAEMsaidoftransportcompaniesofallsizes“theywanttosave,buttheyalsohavetoinvest.Inordertobeabletoinvest,theyhavetobegivenalltypesofincentives;taxincentives,importincentives,evengivingthemaspecialdiscountorpricewhentheyreachindustrialcorridors”.Aspartofthoseincentives,theremustbefinancingsystemstohelpfleetscopewiththecapitalcostsofparticipatinginprogramsthatwouldcertifythemassociallyresponsiblecompanies.

3. Establishacomprehensivefleetmanagementsysteminadditiontostandardizationofvehiclesandsparepartsavailableaccordingtothetypeofoperation.Animportantsteptowardachievingacomprehensivefleetmanagementwouldbetoimplementvehicletrackingandcommunicationsystems.Transportationmanagementcanhelpfillthegapswhentrucksarenotatfullcapacity,andalsooptimizetheloadoftruckthatareatfullcapacity.

4. Establishasystemofplanningandcontrolofroutes,increaseintegrationoftransportfleetintothesupplychain,andestablishlogicalprocessesofloadingandunloadingboxtrailers.LogisticscompaniesarecurrentlyseenbymanyastooexpensiveforalargeportionofthefreightsectorinMexico,however,bothbigandsmallcompanieshaveseenthevalueoflogisticsastheyareanintegralpartofsuccessfultransportationinboththeUnitedStatesandCanada.Thecurrentprocessisslowandresultsininefficienciesintermsoftimeaswellasinefficienciesintermsormerchandiselostordamaged.Basedonthecommentsfrommultipletransportfleets,thesupplychangeis

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notfullyintegratedyet.Thereareinstanceswherethefinaldestinationisnotreadyorcapableofhandlingthecargoasitarrives,creatingcostlylosttime.AsindicatedbyFranciscoJ.BarreraMartínezofSMAEM,“transportfleetswanttoseeamultifunctionalprocesswheretechnologyandmobilitygohand-in-handandwherecitieshelptheprocessofheavydutyvehiclesarrivingtotheloadingandunloadingdocks”.

5. Training,motivation,andcontinuousretentionofstaff.Duringtheinterviews,onetransportfleetdeclared“Iinsistthattrainingstaff,measuringtheeffectivenessofthistrainingandtakingadvantageofnewvehiculartechnologieswillhelpusalot”.Thattransportcompanywasnotaloneintheirassertion.Multipleintervieweesexpressedtheirdesireforincreasedfocusontrainingforoperatorsandotherstaff.Frequently,thereisafearstaffwillleaveafteracompanyhadinvestedresourcesintotheirtraining,however,theconsequencesofuntrainedstaffoutweightheriskofhavingtheindividualleave.Thesenegativeconsequencescanbemoreclearlyseenamongsmallfleetsandowner-operatorswhosufferfromcostlyinefficienciesthatarenottiedtothechoiceoftechnology.Propertrainingandeducationcannotonlyleadtoeconomicbenefits,butalsoleadtoenvironmentalbenefitsandroadsafety.

6. AllintervieweesagreedthatthemovetowardsgreeningfreightishamperedbythegenerallypoorconditionofMexicanhighwaysandtransitsecurity.Thepoorconditionsoftheroutesmakethetransportlessefficient,ascomparedtosimilarunitsinothercountries.Manyofthesmallenterprisesdonotmakeuseofthecorrecttiresorcorrectmaintenance,which,exasperatedbyoverloading,furtherincreasesthenegativeimpactoftheroadsonthestateoffreightinMexico.Intermsofsecurity,asmallenterprise,withlittletonofinancialcapabilities,isfurtherdeterredfrominvestinginefficiency-improvingaccessoriesbytheriskofhavingthosecomponentsstolenbeforethefullreturnoninvestment.

Accordingtomultipleinterviewees,therearesomeessentialdifferencesbetweenthelargetransportfleetsandthesmalltransportfleets.Comprehensivefleetmanagementwouldincreasethestandardofserviceandmakesmallcompaniesmoreprofessionalandcompetitivebytacklingthefollowingessentialdifferences:

• thefrequencyofnewvehiclepurchases,• theknowledgeoftechnologicalneedsaccordingtotheuseofeachtruckunit,• operationalandenergycosts,• availabilityofunits,• thedrivers’leveloftraininginenvironmentalandroaddrivingeducation,• numberofdriversavailableforlongtripswithoutstopstoreduceriskintransportationof

perishables,• capacityofnegotiationfortheacquisitionofunitsandsparepartsinlargevolumes,• strictnessandcontrolledcomplianceinperiodsofmaintenanceofthevehicle,• systemsforoperationscontrol,monitoringandsecurityoftheloadwhileontheroad;and• adherencetonormsandenvironmentalconscience.

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EachofthesedifferencesrepresentbothchallengesandopportunitiesforthefreightsectorinMexico.Ifaddressedproperly,thoseopportunitieswillpositivelydisruptthesector,bolsteringitsgrowthandincreasingitsinternationalcompetitiveness.

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Chapter8:-ProgramadeTransporteLimpioandrelatedprograms

ThischaptercompilesinformationonstandardsandprogramsinMexicothatpromotecleantransport—suchastheProgramadeTransporteLimpio—andlooktomodernizethevehiclefleet.

CurrentpoliciesandprogramsThereareatpresentthreegovernmentalprogramsinMexicowhichaimtopromoteefficiencyandenvironmentalperformanceinthetruckingsector:TheCleanTransportationProgram(TransporteLimpio),theProgramfortheModernizationoftheFederalMotorCarrierFleetandtheFederalMotorCarrierScrappageScheme.TransporteLimpioTransporteLimpioisavoluntaryprogramdevelopedbytheSecretariatofEnvironmentandNaturalResources(SEMARNAT)andtheSecretariatofCommunicationsandTransport(SCT).TransporteLimpioaimstohelpfederalmotorcarrierpermitholders(freightcarriersandusers)toreducetheirfuelconsumption,GHGemissionsandcriteriapollutantsandtheiroperatingcoststhroughtheadoptionofstrategies,bestpracticesandtechnologies.SEMARNATreportsthatsince2008,theprogramhasledtothemitigationof5.3milliontonnesofCO2,withsignificantreductionsinfuelusageacrossthefreightsector.AlthoughTransporteLimpiohasmadeprogress,thereareseveralkeychallengesandbarrierswhichpreventtheprogramfrombeingmoreeffective:

• Limitedbudgetandoutreach• Consolidationandscope• Marketing• Financing• RegulatoryIssues• Technologyevaluation

Thereareseveralareasthatofferconsiderablepotentialtostrengthentheprogram:• LeverageofthefutureemissionsstandardNOM-044• Increasemarketingandawareness• Improvedatacollectionandrecovery• Increasefinancingoptionsforcarriers• ImprovelinksbetweenTransporteLimpioandFleetModernisationandScrappage

programs• FurtherhomologationwithSmartWay

ChapterHighlights

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ProgramfortheModernisationoftheFederalMotorCarrierFleetTheProgramfortheModernisationoftheFederalMotorCarrierFleethasbeendevelopedandpromotedbytheSCTandNAFIN.Theprogramprovidesfundingandtaxincentivesfortheacquisitionofmoreefficientandloweremissionvehicles,whicharenewornearlynew(upto6yearsold).Toincreasethedistributionofcreditandthusencouragetherenewalofmoreunits,FederalGovernmentprovidessupporttointerestedfinancialintermediaries.Asof2012,approximately48,019loweremissionvehicleshavebeenfinancedunderthescheme.Thebiggestchallengeassociatedwiththisprogramistheinabilityforsmallcarriersandowner-operatorstomeetcreditrequirements.Duetoseasonalcashflowsamongstsmallercarriers,thisoftenleadstothemnotmeetingrequirements.Further,therequirementsforcreditstabilityareoftenconsideredunachievableandexpensive,suchasdocumentaryevidenceofeconomicsolvency.FederalMotorCarrierScrappageSchemeTheMexicanScrappageSchemeisoperatedagainbyMexicangovernment,andpromotesthereplacementofoldtrucks(over10yearsold)withincentivestowardstheirscrappage,withthemaximumincentivebeingapproximately15percentofthevalueofanewunit.Between2004and2014,morethan22,000truckshavebeenscrapped,andapproximately1.5milliontonsofCO2hasbeenmitigated.InMay2015,theschemewasupdated,bringingthemaximumfinancialincentivetoapproximately$250,000MXN.Thechallengesfacedunderthescrappageschemearelinkedcloselytothatofthefleetrenewalscheme,largelyduetoalackoffundingwithintheprogram.Thishasledtoincentivesoftenbeingbelowvalueofoldunitleadingtooperatorssellingtheiroldunitsratherthanscrapping.Additionally,thelackoflineagebetweentheFleetModernizationProgramhasledtomorevehiclesenteringthefleetthanbeingscrapped.FuturepoliciesandprogramsMexicanOfficialStandardNOM-044ThenewversionofNOM-044wasexpectedtoenterasfromJan,1,2019buthasbeendelayedprincipallyduetothenecessityofnationwideavailabilityofultra-lowsulfurdieselfuel,neededforEPA2010/Euro6vehicles,supersedingthecurrentEuro2/3standard.Theupdatebasicallystatesthatfrom1January2019,limitsequivalenttoEUROVI/EPA2010mustbemet.However,EUROIV/EPA2004vehicleswillstillbeallowedtobemarketedforsixmonthsafterthatdateandvehiclesthatcomplywithlimitsequivalenttoEUROVmaybemarketedfortwoyears(until1January2021).Inparallel,MexicoalsointendstodevelopanenergyefficiencystandardforheavyvehiclesrelatedtothenewUSrequirementsthatarecurrentlyinflux.

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Currentpoliciesandprograms

ThereareatpresentthreegovernmentalprogramsinMexicowhichaimtopromoteefficiencyandenvironmentalperformanceinthetruckingsector:TheCleanTransportationProgram(TransporteLimpio),theProgramfortheModernizationoftheFederalMotorCarrierFleetandtheFederalMotorCarrierScrappageScheme.

TransporteLimpio

TransporteLimpioisavoluntaryprogramdevelopedbytheSecretariatofEnvironmentandNaturalResources(SEMARNAT)andtheSecretariatofCommunicationsandTransport(SCT).TransporteLimpioismodelledaftertheUSA’sEnvironmentalProtectionAgency(EPA)SmartWayprogram.

TransporteLimpioaimstohelpfederalmotorcarrierpermitholders(freightcarriersandusers)toreducetheirfuelconsumption,GHGemissionsandcriteriapollutants,andtheiroperatingcoststhroughtheadoptionofstrategies,bestpractices,andtechnologies37.

PurposeofTransporteLimpio

Theprogramprovidesrecognitionforcarrier’sparticipation,especiallythoseimplementingplansandmeetingfuelsavingtargets.Moreimportantly,theprogramenablesdatacollectiontobetterunderstandthecurrentstatusofthecarrier’sfleet.Thismeasurementleadsthetransportfleettomakedecisions,toevaluatefuelconsumption,routes,operators,andhandling.TheinformationcollectedthroughTransporteLimpioinformsthetruckselectionprocessandtheirsuitabilityfortheexpecteddutycycleandroute,byevaluatingspecificcharacteristicssuchasthetorque,differentialpitch,transmissionandwheelortiresize.Theprogrampromotesthefleettomakethesemeasurementsandimproveitsfuelconsumption,underitsowntypeofoperationandroutes.

37SEMARNAT,2015http://www.semarnat.gob.mx/temas/gestion-ambiental/calidad-del-aire/transporte-limpio

FederalRoadFreightTransportNAMA(forowneroperatorsandsmallerfleetcarriers)TheFederalRoadFreightTransportNAMA(Nationallyappropriatemitigationaction)isaprogramcurrentlybeingdevelopedundertheMexican-GermanNAMAProgram.ThemainaimoftheNAMAistoimprovetheenergyefficiencyoftheRoadtransportsectorthroughmeasuressimilartothecurrentfederalsuiteofprograms,focusinglargelyonowneroperators(upto5vehicles)andsmallfleetcarriers(upto30vehicles).

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Programachievements

Since2008,itisestimatedthattheprogramhasledtothemitigationof5.3milliontonsofCO2throughtheparticipationof334companieswithapproximately19,000vehicles,accountingforapproximately4percentofthetotalMexicanroadfreightfleet38.Thisreportedsavingequatestoslightlyover500milliongallons(≈1900millionliters)ofdieselfuel.

Table52outlinessomeofthestrategiesandtechnologiesbeingpromotedbyTransporteLimpio,includingprojectedfuelsavings(percent),whilstFigure54showsthecarbonemissionsmitigationachievedbyTransporteLimpiobetween2008and2014.

Table52-TransporteLimpiomarketedfuelsavingsfromstrategiesandtechnology

Measure Potentialforfueleconomy

Strategies

Trainingoperatorshowtodrivetechnical-economically 10-30%

Speedregulation 5-15%

Reduceidling Minimum5%

Vehicleselectionandspecification Variableupto30%

Maintenance 7-15%

Logistics Variable,atleast10%

Fuelcontrol Minimum5%

Techno

logies

Aerodynamicimprovements 5-10%

Lowresistanceroadsurfaces 3%

Automatictireinflationsystems 1%

Moreadvancedlubricants 1.5%

Emissioncontroldevices Source:SEMARNAThttps://www.gob.mx/semarnat/acciones-y-programas/programa-de-transporte-limpio-26305

38SEMARNAT/DGGCARETC,2017,https://www.gob.mx/semarnat/acciones-y-programas/programa-de-transporte-limpio-26305

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Source:SEMARNATInformeMensualTransporteLimpio.Informaciónactualizadaalmesdediciembrede2015

Figure54-CarbonemissionssavingsresultingfromTransporteLimpio(2008to2014)39

Effectivenessoftheprogramfromthefleets’perspective

Weaskedfleetsabouttheirknowledgeof,andparticipationin,theProgramadeTransporteLimpio(Figure55).Sixtyonepercentknewoftheprogramand41percentsaidthattheyparticipateactivelyintheprogram.Almostallofthosethatknowoftheprogrammeasureinsomewaytheirprogress.However,whilst9percentsaytheymonitorweeklyormoreoftenand30percentmonitormonthly,themajority(56percent)donotreviewmorefrequentlythaneverysemester(seeTable53).

Almostallofthosethatknowoftheprogramhavemadechangestoimprovetheperformanceandemissionsoftheirvehicles(Table54).Thechangesmostcommonlycitedinclude(Table55):

• Fleetrenewal:vehiclespecschosentooptimizefueleconomyforspecificroutes(21percent)• Improvedmaintenanceprogram(19percent)• Mechanicalimprovements,enginereprogrammingtoreduceidletimeandlimittopspeed(16

percent)• Operatortraining(9percent)wasrathersurprisinglyin4thplace.

Changesthattheyplantomakeovertherestofthisyearincludebasicallyanextensionofwhattheyarecurrentlydoing(seeTable56).

39Thisgraph,publishedin2015,showsavoidedemissions,accumulatedfrom2008to2014of4.9milliontonsCO2withaparticipationof251companies.Accordingtotheir2017report,theavoidedemissionsfrom2008to2016totaled5.3milliontonsCO2withaparticipationof334companies.

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

2008 2009 2010 2011 2012 2013 2014

tonsCO2/yr

Year

ReportedProgramResults

EmissionsCO2(Ton/yr) AvoidedEmissionsCO2(Ton/yr)

Numberofparticipatingfleets=251

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Figure55-KnowledgeandparticipationintheProgramadeTransporteLimpio

Table53-Howoftendoyoumeasureprogress?

Frequency %Annually 39%every6months 17%every2months 4%monthly 30%weeklyormoreoften 9%

Table54-Haveyoumadechangestoimprovetheperformanceandemissionsofyourvehicles?Which?

Frequency %Fleetrenewal:vehiclespecschosentooptimizefueleconomyforspecificroutes 21%

Improvedmaintenanceprogram 19%Mechanicalimprovements,enginereprogramming 16%Operatortraining 9%Improvedperunitdataandcontrol 9%Improvedaerodynamics 7%Auto-inflation 5%Syntheticoil 5%Moreefficientengines 5%Wide-doubletires 2%reducefuelleaks 2%

0% 10% 20% 30% 40% 50% 60% 70%

Doyouknowtheprogram

Doyouparticipateactivly

Doyoumeasureprogress

Haveyoumadechangestoyourvehicles

Willyoumadechangesdtoyourvehicles

Haveyoumadechangestoprogramming

Willyoumadechangestoprogramming

KnowledgeandparticipationintheprogramadeTransporteLimpio

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Table55-Changesmadetoimprovetheperformanceandemissionsoftheirvehicles

Frequency %Fleetrenewal:vehiclespecschosentooptimizefueleconomyforspecificroutes 21%

Improvedmaintenanceprogram 19%Mechanicalimprovements,enginereprogramming 16%Operatortraining 9%Improvedperunitdataandcontrol 9%Improvedaerodynamics 7%Auto-inflation 5%Syntheticoil 5%Moreefficientengines 5%Wide-doubletires 2%reducefuelleaks 2%

Table56-Changesintervieweesplantomaketoimprovetheperformanceandemissionsoftheirvehicles

Frequency %

Fleetrenewal:vehiclespecschosentooptimizefueleconomyforspecificroutes 40%

Mechanicalimprovements,enginereprogramming 20%Improvedperunitdataandcontrol 13%Improvedaerodynamics 13%Operatortraining 7%Alternativefuels 7%

Therewasquitealotofinterestamongstallthefleetsinterviewedthatknowoftheprogramonimprovingtheirtripscheduling.ThemainfocusofthelargerfleetsisonEnterpriseResourcePlanning/Fleetplanning/Logisticsplanning;Routeanalysis/optimization;andAnalysisofpeakhourtrafficandmovements(takentogetherrepresent60percentofactionstaken)–seeTable57.

Verylittleadditionaleffortwasplannedbytheintervieweesinthisfield.Thosethataretakingactionstoimprovetripschedulingwillcontinue,butothersthathavenotdonemuchtodatedonotplantoincreasetheirlevelofeffort.

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Table57-Changesmadetoimprovetravelscheduling

Frequency %EnterpriseResourcePlanning/Fleetplanning/Logisticsplanning 27%Routeanalysis/optimization 20%Analysisofpeakhourtrafficandmovements 13%Operators:Training/on-roadassistance/restprogrampriortotrips 13%Freightconsolidation 7%Logisticplanningusingnewhighways 7%Implementproductivitymonitoringcenter 7%Telemetryfortransportmanagement(OTM,GEOTAB) 7%

TheintervieweeswereaskedfortheiropinionsonwhatotherthingscouldbedonetomodernizeandimprovetheefficiencyoftransportationinMexico(seeTable58).

Topofmindwasimprovingfuelquality(lowsulfur)toallowcleanerenginetechnology;thenimprovefleetrenewalthroughbetterincentiveprograms,lowerinterestratesandhighertaxbreaks.Thirdontheirlistisimprovingthehighwaysandinfrastructurewithbetterroadsurfaces(highwayandurban)andnew/improvedroadsfortheprincipallogistics’corridors.Thishadthesameresponseasreducingcorruptionandbureaucracy.

Table58-WhatotherthingsdoyouthinkcouldbedonetomodernizeandimprovetheefficiencyoftransportationinMexico?

Frequency %Cleanerdiesel 21%Fleetrenewal,incentives,taxbreaks,interestrates 18%Highwaysandinfrastructure 15%Bureaucracy,corruption 15%Security,highwayandtruckstops 8%Militarycheckpoints;reduce/improve 8%Operatortraining 8%Logisticsandcommunication 5%Foreigninvestment 3%

Presentfuelstandardsdictatethatsulfurcontentofdieselshouldnotexceed15ppminthelargermetropolitanareas,USAborderregionandmaintransportcorridors,butelsewheredieselisstillsoldat500ppmmaximum.ThisfuelisunsuitableforvehiclesconformingtoEuro3standardsandonwardsAdoptingexclusivelyultra-lowsulfurfuelforon-roaddieselvehiclesisessentialtoallowmodern,cleandieselenginetechnology—asusedintheUSAandinEurope—tobeadoptedinMexico.Thiswould

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provideareductioninfineparticulatematteremissionsbyupto99.9percent.Fineparticulatematter(PM2.5)penetratesdeeplyintothelungsandhasasevereimpactonhealth,andhealthcost.

Severaloftheintervieweesmentionedtheneedtoimprovesecurityonthehighwayandattruck-stops;theyalsocomplainedaboutthetimedelaysduetothemilitarycheckpoints,suggestingthatsomecheckpointscouldberemoved,thatthepersonnelmanningthemneedbettertrainingandthatproceduresshouldstreamlinetheprocessingofvehicles.

Challengesandbarriers

AlthoughTransporteLimpiohasmadeprogress,thereareseveralkeychallengesandbarrierswhichpreventtheprogramfrombeingmoreeffective.

BudgetandOutreach

Accordingtofleetsthatparticipateintheprogram,TransporteLimpiocurrentlyoperateswithavirtuallynon-existentbudgetandonlytwopart-timededicatedstaff.ThisseverelyhampersTransporteLimpio’sabilitytoreachthemediumandsmalltransportfleetswhowouldbenefitthemostfromtheprogram,asexpressedbyFranciscoJ.BarreraMartínezfromtheMinistryofEnvironmentoftheStateofMexico.Smallercarrierslackfinancialcapabilityandthemethodologynecessarytoanalyzetheeconomicbenefitsofparticipatingintheprogram.

TransporteLimpiois,attimes,perceivedasanelitistprogramratherthananenergyandemission-savingprogram.ThelimitedparticipationofOwner-operatorsandsmall/mediumfleetshasbeengenerallyduetoalackofunderstandingofitsbenefits,togetherwithageneralperceptionthattheirunitsareina“goodenoughcondition”40.Thisisfurthercompoundedbyowner-operatorsandsmallfleetsfrequentlynotfullyunderstandingtheiroperatingcostsandthesavingsassociatedwiththeuseofnewervehicles.

Consolidationandscope

OneofthekeyissuesrelatedtoTransporteLimpioisthelackofscopeoftheprogramandlackofconsolidationwiththeFleetModernizationProgramandFleetScrappageScheme.ThoughthesethreeprogramsasacollectivebringtheMexicanfreightpictureclosetothatofSmartWay,itseffectivenessislimitedbythislackofconnection,somethingwhichtheMexicanFreightNAMAistryingtoovercome.

40http://transferproject.org/wp-content/uploads/2014/04/Reporte-Final-GIZ-Radiografia-mayo-2014.pdf

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ThislackofscopeandconsolidationisreflectedintheamountofmeasuresprovidedbySmartWayagainstTransporteLimpio,asshowninTable61.

Marketing

WhilstTransporteLimpiodoesmarketitself,ithasbeenrecognizedthatthereisanoveralllackofinformationontheprogram,andlackofawareness,particularlyamongsmallcarriers41.Oftensmallercarriersareunawareofthecurrentcostsassociatedwiththeirageingunits,andthebenefitsofmovingtomoreefficientnewervehicles,andthishasrestrictedtheprogram’sprogress.

SmartWayontheotherhandhaspromoteditselfasabrand,bothintheUSAdomesticmarketandinternationally,throughSmartWayapprovedtechnologiesandvehicles,andgivingfreightcarriersandusergroups’certification.Thisinturnsendsclearmessagestosuppliers,consumers,andthewiderpublicaboutacompany’scommitmenttoenvironmentalsustainability42.

Table59-EXAMPLESOFSMARTWAYBRANDING.EPA(2016)

41http://transferproject.org/wp-content/uploads/2014/04/Reporte-Final-GIZ-Radiografia-mayo-2014.pdf42https://www.epa.gov/sites/production/files/2016-05/documents/smartway_2020_vision_report.pdf

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Financing

TransporteLimpio(andtheFederalFleetModernisationandScrappageschemes)alsocomparespoorlytoSmartWayintermsoffinancing.Overall,theschemereceiveslownationalfunding43,whichcouldexplainitsoveralllackofmeasuresandscope,andabilitytomarketitself.Additionally,therearealackoffinancialinroadsforcarriers,andthosewhicharepresentarenotreadilyaccessibletosmallercarriersduetorestrictionssuchasproofofeconomicsolvency.Furtherasidentifiedby44.interestratesonunpaidbalancesinMexicofluctuatearound20percent,whereasintheUSAtheyareonaveragearound3percent,whichagainpresentsabarrier.

RegulatoryIssues

ThelastandpossiblythemostcriticalchallengeforTransporteLimpioisregulatory.SomesourceshaveacknowledgedthatprogramssuchasTransporteLimpiowerenotapriorityontheMexicangovernment’senvironmentalagenda,potentiallycontributingtoalackoffundingandmarketing45.Further,laxemissionscontrolandtesting46hasallowedcarrierstocontinueusingvehicleswhicharemorepollutingandlessfuelefficient,andthusreinforcesaperceptionthattheirvehiclesaresuitable47.

Technologyevaluation

Speakingontheexperienceswithnewequipmenttoreduceenergyconsumption,SEMARNATdisclosed“Wedonotreallyevaluatethetechnologies.ThetechnologiesthatwepromotearethosethatcomefromtheUnitedStates,butwedonotreallyevaluatewhatpotentialorbenefitstheycanhavehereinMexico”..SincecurrentlytherearenotstandardsfromtestbeingdonebyprogramssuchasTransporteLimpio,fleetshavebeenrunningtesttofigureoutwhatcombinationoftechnologiescangivethemostcost-savingwhenoperatinginMexicanhighwaysandconditions.Energy-reducingtechnologiesalreadyexistintheMexicanfreightsector,however,theuseofthetechnologyisnotstandardized,andtheresultsfromfleettestingthetechnologiesisnotwidelyspreadwithinthesector.Accordingtooneoftheinterviewees“Ofallthetestswehavehad,onlyautomatictireinflationsystemsistheonethathasgivenusthereturnofinvestmentinashorttime”,whichisausefulandspecificpieceofinformationthatwouldnotbeavailabletoothertransportenterprisesthroughgovernmentprogramssuchasTransporteLimpiosincetheyonlyinformationtheprogramreceivesfromfleetsisongeneralfuelconsumption,furtherhighlightingtheneedformoremonitoring,moretechnologytesting,andincreasedatasharing.

43CTSEMBARQ.(2009b).FinalreportMEDEC.TransportSector.WorldBank.44http://ccap.org/assets/Schmid-Freight-Transport-NAMAs-in-COL-and-MEX.pdf45http://mexico.itdp.org/wp-content/uploads/Oportunidades-Crecimiento-Verde-Mexico-ed.-transporte1.pdf46CTSEMBARQ.(2009b).FinalreportMEDEC.TransportSector.WorldBank.47http://transferproject.org/wp-content/uploads/2014/04/Reporte-Final-GIZ-Radiografia-mayo-2014.pdf

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Technologyadoption

TheuseofnewtechnologiesrepresentsamajorchallengeforthefreightsectorinMexico.Extraequipmentontrucksrepresentnotonlyextrainvestmentoneachtruck,butalsoextrarisk.Transportcompaniesfindthemselvestakingintoconsiderationmultiplefactorswhenconsideringinvestingonextraequipment.Onesuchfactoriswhattheyrefertoas“steal-ability”:theriskandpotentialcostofhavingtheequipmentorthetruckstolen.

Areasforfuturedevelopment

Mostfleetsinterviewedagreedthatthefirststeptowardsmakingtheprogrammorerobustandwithbettercoverageisincreasingthequalityandquantityofmonitoringanddatacollection.Currently,TransporteLimpioevaluatesparticipatingfleetsbasedonthedatathateachwishestoshare.Itgivesrecognitiontothosewhocomplywithcertainspecifications.Thepresentgoalistorewardcompaniesforgoodsustainableenvironmentalpractice,arguingthatsociallyresponsiblecompanieswillbemoreappealingtocustomers.However,theprogramisinneedofstrengthening.Intervieweesagreethatthecompensationsshouldbegreaterand,asAlexTheissenLongofFEMSAputit,“itisnolongerenoughforcompaniestojustsignup”.Thereshouldbeincreasedeffortsfrom,both,theprogram(SEMARNAT)andtheparticipantstoimprovefreightconditions.AspointedoutbyRafaelTapiaVelázquezofBIMBO,thepotentialbenefitsofarobustTransporteLimpioprogramarepalpable.Arobustprogramwouldreducetheamountoffuelrequiredperunitofgoodstransportedandtherebyreducetheneedtoimportfuel,andimproveairquality.

Thereareanumberofareasthatofferconsiderablepotential:

1. LeverageofthefutureemissionsstandardNOM-044o Couldbeusedasanincentiveforcarrierstorenewtheirvehicles.o Couldbeleveragedtobetterregulateolderfreightvehicles.

2. IncreasemarketingofTransporteLimpio

o Increasefreightsectorawarenessofthescheme–particularlyamongstowner-operatorsandsmallercarriers(under30vehicles)

o Increaseawarenessofthebenefitsofthescheme,throughmaterialssuchascarbonandfuelsavingscalculators,whichcanbemadeavailabletosuppliers.

o Increasepartnerrecognition–similartotheSmartWayapprovalsystem.o Increasebrandpromotiontoincreasepublicandmarketawareness.

3. Improvedatacollectionandrecovery

o FurtherdeveloptheFLEETmodelforMexicanapplication.o Increasedatarecoveryfromtechnologies–whichmayencourageinvestment.

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4. Increasefinancingoptionsforcarrierso Developaseriesoffinancingoptionswhicharemoreaccessibleforsmallercarriers.

5. ImprovelinksbetweenTransporteLimpioandFleetModernisationandScrappageprograms

o Considerationofconsolidationofthethreeprogramsintoone(currentlybeingproposedaspartoftheFreightSectorNAMA).

o EncourageusersofFleetModernisationandScrappageprogramstosignupanduseTransporteLimpioandviceversa.

FurtherhomologationwithSmartWay

SmartWayismoreextensivethenTransporteLimpio.ItisestimatedthatSmartWayhasmitigated61.7milliontonsofCO2andhassaved144.3millionbarrelsofoilbeingusedasfuel.Additionally,SmartWaynowhasover3,000partnersacrosstheUSAandCanada,andapproximately750,000vehiclesarenowintheprogram,accountingforapproximately17percentofthetotalroadfreightfleet

Table60showsthecurrentperformanceofTransporteLimpioagainstSmartWay,intermsofnumberofpartners,vehiclesinprogram,andfuelandCO2savings.

Table60-SmartWayandTransporteLimpioperformancestatisticsIndicator TransporteLimpio SmartWay

Partners Approx.334(2017) Over3,000Numberoftrucksinprogram 19,000(2014) Approx.750,000(2014)Totalfreightfleet 443,058(2016) 4.396million(2013)Fuelsavings >11.2mbarrelscumulatively(2014)* 144.3millionbarrels(2014)Fuelcostsavings - $20.6billioncumulatively(2014)CO2savings >4.8milliontonnes(2014)

cumulatively61.7milliontonnes(2014)

NOXsavings - 1.458milliontonnesPMsavings - 59,000tonnesSource:Consultantderived

Table61meanwhileshowsthecurrenthostofmeasureswhichformpartofSmartWayagainstTransporteLimpio.Ascanbeidentified,themeasureswhichformTransporteLimpioarelimitedincomparisontoSmartWay,withgapsinmeasuresrelatedtopartnermaterialsandmarketing,suchascarbonandfuelassessmenttools,andpartnerrecognition.Additionally,asnoted,someofthemeasuressuchastheFLEETmodelandfinanceprogramsarerestrictedincomparisontoSmartWay.Forexample,underTransporteLimpiofinancingisonlyavailablefortechnologies.Financingforvehicles,asmentionedpreviously,iscoveredundertheseparateFleetModernizationprogram.

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Table61-SmartWaymeasuresagainstTransporteLimpioMeasure SmartWay TransporteLimpio

Assess,benchmarkandtrackemissionsofcarriers,shippersandlogisticscompanies(FLEETModel)*

ü ü

Idlereductionprogram ü üSpeedreduction ü üCarbonassessmenttools ü PartnerSupport(PAM,helpline) ü GHGandfuelsavingscalculator ü Technologytestprogram(grantstotesttechnology) ü Approvedtractors/trailers ü Approvedtechnologies ü üDrivertraining ü üFinanceprograms(forvehiclesandtechnology)** ü üFinancewebsite ü Partnerrecognition ü Partnereducation ü üBrandmarketing*** ü üInternationalactivity ü Lightdutyvehicles&cars ü

*FLEETMODELADAPTEDFORMEXICOFROMEPA(SMARTWAY)**FINANCINGOFNEWFLEETCOVEREDBYPROGRAMMEFORMODERNISATIONOFTHEFEDERALMOTORCARRIERFLEETINMEXICO***TRANSPORTELIMPIONOTASINTENSIVEASSMARTWAY

MostintervieweesseethebenefitsofincreasedharmonizationofTransporteLimpiowiththeSmartWayprogram.Althoughtherewouldbemanybarrierstoimplementationthatwouldneedtobeovercome,thepotentialbenefitsofharmonizingcouldbesubstantial.

Theprincipalchallengeishowtogetsmall,andmedium-sizefleetsinvolved.Theprogramhassuccessfullyreachedouttolargefleets,whoaretheleasttobenefitfromharmonizationastheyalreadycomplywithmanyoftheSmartWayspecifics.SomeofthelargecompaniesinterviewedareoperatingfleetsthatcurrentlymeetSmartWaystandardsduetotheirinternationalbusinessdealingsintheNAFTAregion.Becauseofthis,vehicleandtrailermanufacturersareofferingproductsthatmeetSmartWaystandards.BothAlejandroFuentesRomeroofGREATDANEandAdriánAzuaraPerdomoofFREIGHTLINERmentionedthattheircompanies’choiceoftiresisinfullconsiderationofSmartWayprotocols.

Smallerfleets,however,havenot,ingeneral,appreciatedthebenefitsofTransporteLimpioorofmovingtowardsharmonization.Manyseetheseprogramsaslittlemorethananextracostitemforthem.AsfreelyadmittedbySEMARNAT,thereisgeneralmistrusttowardthegovernmentandgovernmentrunprograms,whichextendsparticularlytoanyformofdatacollectionor“standardization”.

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HarmonizationcouldprovidethemethodstomeasurethedataandthestandardizationthatthefreightsectorinMexicosodirelyrequires.Inordertoaddresstheissueofmistrusttowardsgovernmentalentities,FranciscoJ.BarreraMartínezoftheMinistryofEnvironmentfortheStateofMexicoproposedtheestablishmentofanindependentresearchorganizationwithlittleornogovernmentalties.Thisorganizationorgroupwouldbetaskedwiththemanagement,upkeepandoverseeingofthetransportsectorinaccordancetostandardizedpracticesandmethodologies.ThegroupwouldserveasthefocalpointofdatagatheringfortheimplementationoftheTransporteLimpioprogramsaswellasgeneraltransportsectorresearch.Currentlytherearenoplansforcreatingsuchgrouporclarityonhowtofundit.

HowfarcanTransporteLimpiogointhenext10years

SEMARANTexpressedtheirobjectiveofincreasingtheamountofcompaniesinvolvedintheprogramby15percentbutthisislimitedbythesparsefundingandpersonneldedicatedtotheprogram.Thelargetransportcompaniesintervieweddonotbelievethegoaltobeambitiousenough.OtherprogramswithintheNAFTAregion,suchasSmartWay,haveup-to-datetoolsandsetstandardsandmethodologieswhichtheycanapplyacrosstheU.S.Apercentageincreaseinprogramparticipationwillnotbesufficientinitsmitigationactions.Basedonglobalfreighttrends,andaccordingtotheinterviewees,inthenextdecadetheTransporteLimpioprogramshould,attheveryleast,aimtoestablishfueleconomystandards,amodelyearcap,andcriterionforcompaniestostarttoenactafleetrenewalsystem.Anoverallgoalfortheincomingyearsmustbetocalculateanddisperseknowledgeontherealcostsofparticipatingornotintheprogram,simplifyingandimprovingdatacollection.

Leveragethetri-lateralSmartWayautomotivesectorpilot.

Apilotprojectisplannedforthenear-termandwillbeadministeredbytheAutomotiveIndustryActionGroup.TheprimaryobjectiveistofocusonautomotivecompanieswithoperationsacrossCanada,theUSA,andMexicoanddevelopaframeworkformoreharmonizedusedofSmartWaytoolsandprocesses.

Wecouldfindnoevidenceofhighwaytractorsbeingconsideredorinvolvedinthisprogram.

ProgramfortheModernizationoftheFederalMotorCarrierFleet

TheProgramfortheModernizationoftheFederalMotorCarrierFleethasbeendevelopedandpromotedbytheSCTandtheMexicandevelopmentbankNAFIN(NacionalFinanciera).Theprogram

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providesfundingandtaxincentivesfortheacquisitionofnewornearlynew(upto6yearsold)truckstoimprovethefleetefficiencyandreduceitsemissions.Toincreasethedistributionofcreditandthusencouragetherenewalofmoreunits,FederalGovernmentprovidessupporttofinancialintermediaries.Asof2012,approximately48,019loweremissionvehicleshavebeenfinancedunderthescheme48


ThebiggestchallengeassociatedwiththeFleetModernizationProgramistheinabilityforsmallcarriersandowner-operatorstomeetcreditrequirements.Thisismainlyduetoseasonalcashflows,thedifficultytokeepoperation’srecordsandtoshowevidenceoneconomicsolvency49.

Taxcredits,whilstusefultothelargerfleetsandprivatecompaniesarenotmuchofanincentivetothoseowner-operatorswhoparticipateintheinformalsectoroftheeconomy,orarebarelymakingaprofit.

Allintervieweesagreedthattheincentiveshavetobeincreased,possiblylinkedtocarbonbonds.FEMSAproposedthatitwouldbebettertosplitthepayment:halftotheonewhoissellingthepre-ownedtruck,andtheotherhalftotheOwner-operator.Thiscouldincentivizethefleetwhosoldthepre-ownedtruck,andboughtanewone,andalsotheOwner-operatorwhoboughtthepre-ownedtruckanddeliveredthescrap.

Manyalsocommentedontheneedforalawtolimittheageofheavydutytruckswithfederalplates,similartowhathasbeenimplementedforalongtimeoncoaches50.Theapplicationofthelawcouldbegradual:Forexample,thatsays,"Withinayearalltrucksover20yearsinMexicowillnolongerbeabletocirculate.Intwoyears’time,themaximumagecouldbereducedto19years,andsoon”.Thiswouldhelpfueleconomy,emissions,safetyandslowlymovetheowner-operatorsandsmallerfeederlinesintotheformalsector.

Mostintervieweescommentedthatgovernmentprogramsthatgivecredittorenovateunitsorbuymoreunitsandexpandthefleetusuallycomewithdisadvantageousconditionsandhighinterestrates.TheycommentedthatPACCARorKENWOTHforexamplegiveamuchbetterdeal,withmorefacilitiesandaprocessthatisnotsocumbersome.Fleetsrarelychoosetoparticipateingovernmentplansiftheyhaveotheroptionsbecauseoftheassociatedbarriersandcosts.

48http://mexico.itdp.org/wp-content/uploads/Altas-emisiones-Baja-eficiencia.pdf49http://transferproject.org/wp-content/uploads/2015/12/GIZ-TRANSfer-Documento-NAMA-Autotransporte-Federal-Carga.pdf50Coacheshaveamaximumagelimitof10or15yearsaccordingtothetypeofservicetheyprovideSee:http://dof.gob.mx/nota_detalle.php?codigo=5387322&fecha=31/03/2015

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FederalMotorCarrierScrappageScheme

TheMexicanScrappageSchemeisoperatedbyMexicangovernment,throughtheSCT,itpromotesthereplacementoftrucksover10yearsold.Inexchangeofthescrappageoftheoldtruck,theprogramprovidesanincentiveofup15percentofthevalueofanewunit(approximately$225,000MXN)51Between2004and2014,morethan22,000truckshavebeenscrapped,andapproximately1.5milliontonsofCO2hasbeenmitigated.InMay2015,theschemewasupdated,bringingthemaximumfinancialincentivetoapproximately$250,000MXN52.


Thechallengesfacedunderthescrappageschemearelinkedcloselytothatofthefleetrenewalscheme,largelyduetoalackoffundingwithintheprogram.Thishasledtoincentivesoftenbeingbelowthemarketvalueoftheoldunit(Table62),leadingtooperatorssellingtheiroldunitsratherthanscrapping.Thefleetsinterviewedcommentedthatwhentheydotheanalysis,theyseethatitisbettertocontinueworkingtheoldunit,whichgivesamorefavorablecost-benefitthanparticipatinginthescrappageprogram.ItisevenbetterforthemtoselltheunitontheopenmarketbeforegoingtoaScrapProgram,becausetheincentiveistoolow.

Additionally,thelackofcoordinationbetweentheFleetModernizationProgramhasledtomorevehiclesenteringthefleetthanbeingscrapped53.

Table62-:Currentscrappageincentivesagainstvalueofoldvehicles

Vehicle Value20yeartruck(Euros) Vehicleage

Valuenewtruck

Scrappageallowance(%)

Scrappageallowance(Euro)

Costofchange(Euro)

C3(20t)8,000.00 New 61,142.86 15% 6,827.43 54,315.438,000.00 5-8secondhand 14,600.00 15% 2,190.00 12,410.00

T313,500.00 New 84,000.00 15% 10,672.00 73,328.0013,500.00 5-8secondhand 25,500.00 15% 3,814.29 21,614.29

Source:http://transferproject.org/wp-content/uploads/2014/07/D2_6_Truck-Scrapping-Improvement_Schmid.pdf

51http://ccap.org/assets/Schmid-Freight-Transport-NAMAs-in-COL-and-MEX.pdf52http://www.keepeek.com/Digital-Asset-Management/oecd/governance/review-of-the-regulation-of-freight-transport-in-mexico_9789264268364-en#.WZbLiSiGNPY53http://ccap.org/assets/Schmid-Freight-Transport-NAMAs-in-COL-and-MEX.pdf

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Futurepoliciesandprograms

MexicanOfficialStandardNOM-044

TheMexicanStandardNOM-044-SEMARNAT-2006whichdefinesmaximumpollutantemissionsfromheavydutyenginesandvehiclesisunderrevision.ThenewversionofNOM-044isexpectedtoenterineffectonJanuary,1,2019afterseveralyearsofdelays,whichwereprimarilyduetothelackofavailabilityofultra-lowsulfurdieselfuelnationwide.

TheupdatetoNOM-044statesthatfrom1January2019,limitsequivalenttoEUROVI/EPA2010mustbemet.However,EUROIV/EPA2004vehicleswillstillbeallowedtobemarketedforsixmonthsafterthatdateandvehiclesthatcomplywithlimitsequivalenttoEUROVmaybemarketedfortwoyears(until1January2021)54.

WhilstNOM-044doesnotdirectlytargetGHGemissions,itwillreduceclimateimpactsintwoways.First,themoremodernizedEUROVIandEPA2010enginesaremoreefficientthanEuroIVandUS2004engines,whichareusingtechnologiesthatareroughly15yearsold.Moreover,theupdatedNOM044standardwillrequiretheuseofdieselparticulatefilers(DPFs),whichisawell-establishedaftertreatmentsystemthatgenerallyreduceparticulatematter(PM)emissionsby95percentormore.Blackcarbonisapotentshort-livedclimateforcerandisakeyconstituentofPMemissions.Thus,inadditiontothesignificanthealthbenefitsprovidedbythereducedPMemissions,DPFsalsoresultinasubstantialdecreaseofblackcarbonemissionsandtheassociatedclimatewarmingimpacts.

InadditiontotheseNOM044developments,Mexicoalsointendstodevelopanenergyefficiencystandardforheavydutyvehiclestoimprovefuelefficiency49.ThisstandardislikelytobebasedontheUSregulation,whichiscurrentlyinfluxduetolegalchallengesfromindustry.TheEPA’sintentiontodefinefuelefficiencystandardsforthetractor-trailercombinationhasreceivedheavynegativelobbyingfromtheindustrymainlybecausethetractorandtrailerunitsareproducedbydifferentmanufacturerswhichmakescombinedcertificationmorecomplicated.Inaddition,thecurrentpoliticalframeworkislikelytoleadtoadelayinimplementation.

54The2006publicationoftheNOMallowedSEMARNAT,inJanuary2017,toevaluatethenationalavailabilityofultralow-sulfurdieselinordertodetermineiftheconditionsexistforcompliancewiththeBstandards.Thisevaluationwasdeemedinsufficientandthestandardwasdelayedby12months.Similarly,aprovisionwasenactedtoallowmanufacturerstosellexistinginventoriesofvehiclesthatwereproducedduringtheapplicationofstandardAforuptosixmonthsaftertheimplementationofstandardB.Theintentwastoprovideareasonableperiodoftransitionwhileprotectingagainststockpilingofoldinventory.

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FederalRoadFreightTransportNAMA(forowneroperatorsandsmallerfleetcarriers)

TheFederalRoadFreightTransportNAMA(Nationallyappropriatemitigationaction)isaprogramcurrentlybeingdevelopedundertheMexican-GermanNAMAProgram.ThemainaimoftheNAMAistoimprovetheenergyefficiencyoftheroadtransportsectorthroughmeasuressimilartothecurrentfederalsuiteofprograms,focusinglargelyonowneroperators(upto5vehicles)andsmallfleetcarriers(upto30vehicles).Theseinclude:

1. Ecodrivingcoursesandtraining-fordriversaspartofbi-annualSCTcourses–expectedCO2savingof2-3.5milliontons/year55.Thisprograminvolves:• Creationofanationalnetworkoftrainers/trainingcenters• Creationofanonlinetrainingplatform• Developmentofprogramevaluationandmonitoringfortraining• Developmentoftrainingmaterialsandtechnicalguidance• Greenlicense–certificationof‘professionalism’fordrivers,goodunitstatusand

consumptionofcleanerfuels49.2. Technologicalimprovements–suchasaerodynamicimprovementsandautotireinflation

systems–expectedCO2savingof0.3-1milliontons/year553. Modernisationofvehiclefleet–viascrappageandrenovationofroadtransportfleet–

expectedCO2savingof2milliontons/year(average)55

TheprogramisexpectedtocostUS$19.76milliontoimplement56,andwillcomplementthefutureMexicanemissionstandardNOM-044.UndertheNAMA,financingwouldalsobeavailableforfuelsavingstechnologiesandnewvehicles,withsomecreditguaranteesforsmallenterprises

55https://unfccc.int/files/cooperation_support/nama/application/pdf/mexico_nama_final.pdf56http://www.nama-database.org/index.php/Freight_transport_NAMA

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Chapter9:-Fuelefficiencyandemissionsstandards

ThischaptercompilesinformationonfuelefficiencyandcritierapollutantemissionsstandardsinMexicoandintheUSA.

InMexicoNewVehiclesThecurrentapplicableemissionsstandardfornewhighwaytractorswithdieselenginesis:NOM-044-SEMARNAT-2006whichrequirescompliancewithEUROIV/EPA2004.TheUSHeavydutydieselvehicleemissionsstandardcomplianceforEPA2010isavailableinthismarketbutnotyetgenerallyadoptedandnotenforced.

Theupdatetotheheavy-dutydieselemissionsstandard,whichwillsoonbepublished,basicallystatesthatfrom1January2019,limitsequivalenttoEUROVI/EPA2010mustbemet.However,EUROIV/EPA2004vehicleswillstillbeallowedtobemarketedforsixmonthsafterthatdateandvehiclesthatcomplywithlimitsequivalenttoEUROVmaybemarketedfortwoyears(until1January2021).

TheproposedstandardsrequiretheinstallationandoperationoffullOn-BoardDiagnostic(OBD)systemsonallnewvehicles.

In-usevehiclesThecurrentemissionsstandardfortheverificationofin-usedieselvehiclesistheNOM-045-SEMARNAT-2006fornationalcoverageandNOM-EM-167-SEMARNAT-2016specificallyforvehiclescirculatinginMexicoCity,Hidalgo,StateofMexico,Morelos,PueblaandTlaxcala.Thesestandardslimitexhausrtopacitiy,whensubjectedtoafree-accelerationtestprocedure

FuelefficiencystanardThereiscurrentlynofuelefficiencystandardapplicabletohighwaytractorsinMexico

ChapterHighlights

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EmissionstandardsfornewheavydutydieselvehiclesinMexico

Thecurrentapplicableemissionsstandardfornewhighwaytractorswithdieselenginesis:NOM-044-SEMARNAT-2006

Emissionsstandardsforbothlight-andheavy-dutyvehicleswerefirstestablishedin1988andbecameeffectiveinmodelyear1993(NOM-044-ECOL-1993).ThestandardNOM-044-SEMARNAT-2006wasadoptedin2006asanupdatetoNOM-044-SEMARNAT-1993,anditestablishesemissionlimitsfortotalhydrocarbons,non-methanehydrocarbons,carbonmonoxide,nitrogenoxides,particles,andopacityfornewheavy-dutydieselengines.NOM-044iscurrentlyunderrevision.ThenewversionofNOM-044isexpectedtoenterasfromJan,1,2019butmaysufferaone-yeardelay.

IntheUSATheUSimplementedstrictemissionsstandardsforHeavydutydieselvehiclesin2010(EUROVI/EPA2010)andhasfocusedonimprovingfueleconomyinthissegmentovermorerecentyears.

IntheU.S.,averagetractor-trailerfuelconsumptionratesfortheentirefleetareapproximately2.6km/L(6mpg)comparedto2.9km/LfoundinthesesurveysinMexico.Significantdifferencesinaveragevehiclespeed,vehicleloadingandaltitudecanaccountforthis.

ForthenewestU.S.models,fuelconsumptionistypicallybetween2.8and3.0km/L(6.5–7mpg).Afleet-wideanalysisdonefortheEuropeanCommissionestimatestractor-trailerfuelconsumptionatroughly3.2km/L,however,thereisnotsufficientinformationtosaydefinitelyiftheU.S.orEUhasmoreefficienttrucks.

TheU.S.setstandardsbeginningin2014modelyearwithmorestringentstandardsfollowingin2017modelyear.TheserepresentanoverallfuelconsumptionandCO2emissionsreductionupto23percentfromthetractorsandtheenginesinstalledinthemwhencomparedtoabaseline2010modelyeartractorandenginewithoutidleshutdowntechnology.Phase2standardswouldbeintroducedoveralongterm,startingin2021andculminatein2027.Thestandardsdifferbycabtypeandroofheightandareplannedtoachieveafurther24percentreductioninCO2emissionsandfuelconsumption.However,thepresentgovernmenthasmadepublicitsintentiontoreviewandrevisetheselimits.

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DieselEngineStandards

1993-2014

Emissionstandardsfornewheavy-dutydieselenginesfirstbecameeffectiveinmodelyear1993andwerebasedonUS1991andlaterrequirements,includingtheUSEnvironmentalProtectionAgency(EPA)FTPtransienttestcycle.StandardsforMY1993-1998wereequivalenttoUSAstandardsandcompliancecouldbedemonstratedthroughcertificationbyUSEPA.UnderNOM-044,enginesinMexicoareprovidedcomplianceoptionsandcanmeetEuropeanstandards,asmeasuredontheofficialEuropeantestcycles(ETC57andESC58),asanalternativetotheEPA-basedstandards;compliancewithstandardscanbedemonstratedthrough:

• Letterorproofissuedbymotormanufacturer,includinginvoiceofthetestinglaboratory,• CertificateorproofissuedbytheEnvironmentalProtectionAuthorityofthecountryoforiginor

countryofcertification,or• CertificateissuedbyCertificationBodiesforthecountryoforiginorcountryofcertification.

In2006,thestandardNOM-044-SEMARNAT-2006wasadoptedasanupdatetoNOM-044-ECOL-1993.Itestablishesemissionlimitsfortotalhydrocarbons,non-methanehydrocarbons,carbonmonoxide,nitrogenoxides,particles,andopacityfornewheavy-dutydieselengines.ThestandardallowscompliancewitheitherUS2004orEuroIVequivalentstandards.Theemissionstandardscompliancetimelineandcurrentequivalentlimitvaluesofthe1993and2006standardsareoutlinedbelow.

MandatorycompliancewithEPA2004/EuroIVstandardsbeganinJuly2008,however,therelevantstandardwasmodifiedin2011bySEMARNATtoextendtheregulatorytimelineforcompliancewithEPA2004/EuroIVstandardstoJune2014.

57TheETCtestcycleisusedforemissioncertificationofheavy-dutydieselenginesinEuropestartingintheyear2000(Directive1999/96/ECofDecember13,1999).TheESCandETCcyclesreplacetheearlierR-49test.TheETCcyclewasdevelopedbasedonrealroadcyclemeasurementsofheavydutyvehicles58TheESCtestcyclewasintroduced,togetherwiththeETC(EuropeanTransientCycle)andtheELR(EuropeanLoadResponse)tests,foremissioncertificationofheavy-dutydieselenginesinEuropestartingfromtheyear2000(Directive1999/96/ECofDecember13,1999).TheESCisa13-mode,steady-stateprocedurethatreplacestheR-49test.

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Table63-Max.PermissibleEmissionsStandards;Heavy-dutyVehiclesComplianceMax.PermissibleEmissionsStandardsHeavy-dutyVehiclesComplianceYear ComplianceEquivalent

1993 USEPA19911994 USEPA19941998 USEPA19982006-2008 USEPA1998orEuroIII2008† USEPA2004orEuroIVNotes:†extendedthrough2014.06;laterrequirementsarenotspecified.

Source:http://transportpolicy.net/index.php?title=Mexico:_Heavy-duty:_Emissions#Overview

Table64-MaximumPermissibleEmissionsforHeavy-dutyVehiclesing/bhp-hrMaximumPermissibleEmissionsforHeavy-dutyVehicles

limitvaluesexpressedasgramsperbrakehorsepower-hour(g/bhp-hr)Standard HC NMHC+NOx CO NOx Smoke

opacity%(acceleration)

Smokeopacity%(pull)

Smokeopacity%(peak)

A1 1.3 N/A 15.5 4.0 20 15 50B2 N/A 2.43 15.5 N/A 20 15 50

Notes:1.StandardAMaximumpermissiblelimitsforenginesand/ornewunitsproducedfrom2006untilJune2008,obtainedusing

theFTP(FederalTestProcedure)heavy-dutytransientcycle.2.StandardBMaximumpermissiblelimitsforenginesand/ornewunitsproducedfromJuly2008untilJuly2014,obtained

usingtheSET(SupplementalEmissionsTest).3.Limitvaluecouldbe2.5providedtheNMHCarelessthan0.5


Table65-MaximumPermissibleEmissionsforHeavy-dutyVehiclesing/kwhrMaximumPermissibleEmissionsforHeavy-dutyVehicleslimitvaluesexpressedasgramsperkilowatthour(g/kwhr)Standard TestMethod HC NMHC CO NOx Part SmokeOpacity3A1 ESC 0.66 N/A 2.1 5.0 0.10 N/A ETC N/A 0.78 5.45 5.0 0.16 N/AB2 ESC 0.46 N/A 1.5 3.5 0.02 N/A ETC N/A 0.55 4.0 3.5 0.03 N/ANotes:1.StandardAMaximumpermissiblelimitsforenginesand/ornewunitsproducedfrom2006untilJune2008,obtainedusingtheESC(EuropeanStationaryCycle)andETC(EuropeanTransientCycle).2.StandardBMaximumpermissiblelimitsforenginesand/ornewunitsproducedfromJuly2008untilJuly2014,obtainedusingtheESC(EuropeanStationaryCycle)andETC(EuropeanTransientCycle).3.TheEuropeanLoadResponse(ELR)enginetesthasnoapplicablelimitvaluesintheabovetableexceptunderSmokeOpacity,wherevaluesare0.8and0.5forstandardsAandB,respectively.


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2015-2018

TheupdatetoNOM-044,whichwillsoonbepublished,basicallystatesthatfrom1January2019,limitsequivalenttoEUROVI/EPA2010mustbemet.However,EUROIV/EPA2004vehicleswillstillbeallowedtobemarketedforsixmonthsafterthatdateandvehiclesthatcomplywithlimitsequivalenttoEUROVmaybemarketedfortwoyears(until1January2021)59.

Theproposedregulationwillstillapplytodieselenginesorfullvehicleswithagrossvehicleweightabove3,857kg.Thefollowingtableshowsthetimingandcertificationrequirementsoftheproposedstandard.StandardA,inforcefromtheadoptionoftheproposalthrough2017,isessentiallythesameasthecurrentNOM-044standard;startingin2018,StandardBrequirescompliancewitheitherEuroVI/6orEPA2010standards.

Table66-Frameworkoftheproposedstandardsfor2019Frameworkoftheproposedstandards

Timeframe NOM-044Standard CertificationRequirement2015-2018 1A EPA2004

2A EuroIVBeginningJan.1,2019 1B EPA2010

3B2B EuroVI4B Euro6


Limitvalues

Limitvaluesforheavy-dutyenginesareshowninthefollowingtables.Limitsaresetingramsperbrakehorsepower-hour(g/bhp-hr)forEPA2004andEPA2010standards,andareingramsperkilowatt-hour(g/kWh)forEuroIVandEuroVIstandards.Particlenumberandammonia(NH3)limitsaresetaspartoftheEuroVIstandardsbuthavenotbeendefinedaslimitvaluesunderEPAstandards.

59The2006publicationoftheNOMallowedSEMARNAT,inJanuary2017,toevaluatethenationalavailabilityofultralow-sulfurdieselinordertodetermineiftheconditionsexistforcompliancewiththeBstandards.Thisevaluationwasdeemedinsufficientandthestandardwasdelayedby12months.Similarly,aprovisionwasenactedtoallowmanufacturerstosellexistinginventoriesofvehiclesthatwereproducedduringtheapplicationofstandardAforuptosixmonthsaftertheimplementationofstandardB.Theintentwastoprovideareasonableperiodoftransitionwhileprotectingagainststockpilingofoldinventory.

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Table67-U.S.certificationlimitvaluesforheavy-dutyenginesU.S.certificationlimitvaluesforheavy-dutyengines

CertificationRequirement

Standard TestMethod

CO NOx NMHC HCNM+NOx

PM ParticleNumber(#/kWh)

NH3

g/bhp-hrEPA2004 1A SET&FTP 15.5 – – 2.4 0.10 – –

0.5 2.5 – –EPA2010 1B SET&FTP 15.5 0.20 0.14 – 0.01 – –


Table68-Europeancertificationlimitvaluesforheavy-dutyenginesEuropeancertificationlimitvaluesforheavy-dutyengines

CertificationRequirement

Standard TestMethod

CO NOx NMHC HC PM ParticleNumber(#/kWh)

NH3g/kWh

EuroIV 2A ESC 1.5 3.5 – 0.46 0.02 – –ETC 4.0 3.5 0.55 – 0.03 – –

EuroVI 2B WHSC 1.5 0.4 – 0.13 0.01 8.0x1011 10WHTC 4.0 0.46 – 0.16 0.01 6.0x1011 10


Usefullifeisdefinedasthereferencevalues(measuredinvehicle-kmandyears)thatareusedindurabilitytestsfornewengineorvehiclecertification.Usefullifedoesnotrefertoin-usevehicleemissions,norisitequivalenttothemanufacturerwarranty.

Table69-UsefulliferequirementsUsefulliferequirements

CertificationRequirement Standard GrossVehicleWeight(kg)

UsefulLifeDistance(km) Time(years)

EPA2004&EPA2010

1A&1B 3,857-8,845 177,023 108,846-14,970 297,721

14,971andlarger 700,046EuroIV 2A 3,857-15,999 200,000 6

16,000andlarger 500,000 7EuroVI 2B 3,857-15,999 300,000 6

16,000andlarger 700,000 7Source:http://transportpolicy.net/index.php?title=Mexico:_Heavy-duty:_Emissions#Overview

On-BoardDiagnosticsandComplianceInducements

TheproposedstandardsrequiretheinstallationandoperationoffullOn-BoardDiagnostic(OBD)systemsonallnewvehicles.ThetypeofOBDsystemmustberecordedinthecertification

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documentation.AppendixBoftheproposalprovidesadetailedexplanationofthegeneralsystemrequirementsandattendantdocumentation.AsbothEPAandEurostandardsrequirethefullphase-inofOBDsystemsbefore2019,theproposalreliesoncertificationdocumentationastheprimaryproofofcompliancewithOBDrequirements.Similarly,theproposalrequiresthatnewvehiclesandenginesthatuseareagentforNOx-reducingSCRsystemsarealsoequippedwithoperatingalertsanddriverinducementstoensurethecorrectfunctioningofthesesystems.Thesefail-safesincludelights,auditoryalarmsandrequirementstosafelylimitvehicleoperationinthecaseofimproperuse,suchaspoor-qualitydieselexhaustfluid(DEF)orinsufficientDEFsupply.

EmissionstandardsforIn-useHeavyDutydieselvehiclesinMexico.

Thecurrentemissionsstandardfortheverificationofin-usedieselvehiclesistheNOM-045-SEMARNAT-2006fornationalcoverageandNOM-EM-167-SEMARNAT-2016specificallyforvehiclescirculatinginMexicoCity,Hidalgo,StateofMexico,Morelos,PueblaandTlaxcala.

NOM-EM-167-SEMARNAT-2016coversallin-usevehicleemissionstestinginthesestates.TheprincipalprogramsareoperatedbyMexicoCity(www.sedema.cdmx.gob.mx)andtheStateofMexico(sma.edomex.gob.mx),whodevelopedthisstandardinconjunctionwithSEMARNATtoprovideamorestringenttest,addthereviewofon-boarddiagnosisofvehiclesandtheiremissions,andestablishthecharacteristicsofremotesensingdevices.

NOM-045-SEMARNAT-2006wasantecededbyNOM-045-SEMARNAT-1996(publishedonApril22,1997)whichreplacedNOM-CCAT-008-ECOL/199360.Forallthesestandards,theapplicabletestforheavydutydieselvehiclesisastaticverificationofexhaustopacitylevelswiththeengineunderfreeacceleration.

60ThatwasrenamedtoNOM-045-ECOL-1993onNovember29,1994

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Previouslimits

NOM-045-SEMARNAT-1996Limitsforvehiclesofover2,727kgsPBV

Table70-NOM-045-SEMARNAT-1996Limitsforvehiclesofover2,727kgsPBVModelyearofengine

Coefficientoflightadsorption(m-1)

Percentopacity(%)*

1990andearlier

1.99 57.61

1991andlater

1.27 42.25

Source:NOM-045-SEMARNAT-1996

CurrentLimits

NOM-045-SEMARNAT-2006Limitsfordieselvehiclesofover2,727kgsPBV

Table71-NOM-045-SEMARNAT-2006Limitsfordieselvehiclesofover2,727kgsPBVModelyearofengine


Percentopacity(%)*

1990and

earlier

3.0 72.47

1991andlater

2.5 65.87

Source:NOM-045-SEMARNAT-2006

NOM-EM-167-SEMARNAT-2016Limitsfordieselvehiclesofover2,727kgsPBV

Table72-NOM-EM-167-SEMARNAT-2016Limitsfordieselvehiclesofover2,727kgsPBVModelyearofengine


Percentopacity(%)*

1990and

earlier

2.25 61.99

1991andlater

1.50 47.53

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Source:NOM-EM-167-SEMARNAT-2016

Testprocedure

ThetestprocedureinalltheseversionsoftheNOMconsistsinaprocedurewherebywiththevehiclestationary,theengine,israpidlyacceleratedthreetimesfromitsidlespeedtoitsgovernedspeed.Themaximumopacitymeasuresduringthisaccelerationisaveragedoverthethreetestsandcomparedtotheapplicablelimit.

ThisOfficialMexicanStandardpartiallyagreeswiththeAmericanStandardSAE-J-1667.-Snap-accelerationsmoketestprocedureforheavy-dutydiesel-poweredvehiclesIssued1996-02.ItusestheInstantaneousAccelerationOpacityTestProcedureforDieselEngineHeavyVehicles,February1996.U.S.A.

TestFrequency

Vehiclesarerequiredtobetestedinanofficialtestcentereverysemester

TestFacilities

Almostallhighwaytractorsusefederal(SCT)licenseplates.ThesehavetobetestedeverysixmonthsinatestcenterauthorizedbySCTofwhichthereare250authorizedinthecountry61.

ForvehiclestocirculateinMexicoCity,Hidalgo,StateofMexico,Morelos,PueblaandTlaxcala,thetestmustbecarriedoutinanSCT-authorizedtestcenterthatcomplieswithNOM-EM-167-SEMARNAT-2016.155ofthe272SCT-licensedtestcentersmeetthisrequirement.MexicoCityhas7centersauthorizedtotesthighwaytractors

TestEffectiveness

Thefreeaccelerationopacitytesthasbeeninuseformanyyears.Itisalowcostandeasytesttoperformbutsuffersfromcertainlimitations:

• Thetestcycle(snapaccelerationfromidletoratedrpm)isnotonethatrepresentsnormaldrivingconditions.Thus,itsresultshavelittleornocorrelationwithcriticaldriveconditionswhenthevehicleislikelytoemitsmoke(suchasluggingupahill,fullyloaded.

• Theprincipalhealthdamageofdieselvehiclesiscausedbyfineparticleemissions(PM2.5).Thereislittleornocorrelationbetweentheseandopacity.

61plusanadditional22thatservetheneedsofspecificprivatecompanies/organizations

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• Theopacitylevelmeasuredinthetestisdependentonhowfastthetesteracceleratestheengine.Thus,testerscanreducethereadingbyacceleratingslower,andthistestcycleisnotconducivetorepeatableimpartialresults.

• Manymodernelectronically-governedenginesdonotallowthiscycletoberun.Theenginemanagementcomputercanrestrictthisfreeaccelerationtestcycle.

Gasoline-enginelightdutyvehiclesoriginallyusedastaticemissionstest(BAR’90),butthiswaschangedtoadynamometer-baseddynamictest,toaddresssimilarissuesoftestrepeatability,transparencyandtorestricttheinfluencethatthetestoperatorcanexertonthetestresults.Thereisongoingdiscussionofmovingdieseltestingalsotoadynamometerbutthisisalongwayfromgettingwrittenintoanewversionofthestandard.

TestResults

SCTdoesnotpublishtestresultsorstatistics.MexicoCityandtheStateofMexicodopublishresultstoresearchersforanalysisbutlittleisavailableforhighwaytractors,andcurrentopacitytestingresultsdonotgiveanyusefulindicationofthevehicleson-roademissions.

FuelefficiencystandardsintheUSA

IntheU.S.,averagetractor-trailerfuelconsumptionratesfortheentirefleetareapproximately2.6km/L(6mpg)comparedto2.9km/LfoundinthesesurveysinMexico.Significantdifferencesinaveragevehiclespeed,vehicleloadingandaltitudecanaccountforthis.

ForthenewestU.S.models,fuelconsumptionistypicallybetween2.8and3.0km/L(6.5–7mpg).Afleet-wideanalysisdonefortheEuropeanCommissionestimatestractor-trailerfuelconsumptionatroughly3.2km/L,however,thereisnotsufficientinformationtosaydefinitelyiftheU.S.orEUhasmoreefficienttrucks.

TheNorthAmericanCouncilforFreightEfficiency(NACFE)summarizedtruckfleetfuelconsumptionbasedonitsdatasetincluding40,783tractorsand125,711trailersfromseven,generallyfor-hirecarriers,twoprivatefleetsandoneprimarilyleasingfleet.Thisstudyshowedaveragefuelconsumptionacrossalltenfleetswas2.8km/Lin2012and2.7km/Lin201062.

TheU.S.EnvironmentalProtectionAgency(EPA)andtheDepartmentofTransportation’sNationalHighwayTrafficSafetyAdministration(NHTSA)setstandardsbeginningin2014modelyearwithmorestringentstandardsfollowingin2017modelyear.Table73presentstheagencies’respectivestandardsforcombinationtractormanufacturersforthe2017modelyear.Thestandardsrepresentanoverallfuel

62Source:ICCT2015,Literaturereview:real-worldfuelconsumptionofheavy-dutyvehiclesintheUnitedStates,China,andtheEuropeanUnion,BenSharpeandRachelMuncrief

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consumptionandCO2emissionsreductionupto23percentfromthetractorsandtheenginesinstalledinthemwhencomparedtoabaseline2010modelyeartractorandenginewithoutidleshutdowntechnology63.

Table73–HeavyHEAVY-DUTY(Class8)COMBINATIONTRACTOREPAEMISSIONSSTANDARDS(GCO2/TON-MILE)ANDNHTSAFUELCONSUMPTIONSTANDARDS(GAL/1,000TON-MILE)

Daycab

Sleepercab

2017ModelYearCO2GramsperTon-MileLowRoof 80 66MidRoof 86 73HighRoof 89 72

2017ModelYearGallonsofFuelper1,000Ton-MileLowRoof 7.8 6.5MidRoof 8.4 7.2HighRoof 8.7 7.1

BuildingonthesuccessofthesestandardstheEPAandNHTSAhaveproposedaPhase2programthatwillreduceCO2emissionsandfuelconsumptionfurther.ThePhase2standardswouldbeintroducedoveralongterm,startingin2021andculminatein2027.Thestandardsdifferbycabtypeandroofheightandareplannedtoachieveafurther24percentreductioninCO2emissionsandfuelconsumption64.However,thepresentgovernmenthasmadepublicitsintentiontoreviewandrevisetheselimits.Fueleconomystandardsforthetractor-trailercombinationhavereceivedheavynegativelobbyingfromtheindustrymainlybecausethetractorandtrailerunitsareproducedbydifferentmanufacturerswhichmakescombinedcertificationmorecomplicated.Inaddition,thereislikelytobeadelayinimplementation.

63Source:FederalRegister/Vol.76,No.179/Thursday,September15,201164Source:EPA-420-F-15-901June2015:EPAandNHTSAProposeStandardstoReduceGreenhouseGasEmissionsandImproveFuelEfficiencyofMedium-andHeavy-DutyVehiclesforModelYear2018andBeyond

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ANNEX:

ApproachandMethodology

Thisprojectinvolvedthecollection,useandanalysisofdatafromthreetypesofsource:

a) Informationfrompubliclyavailablesourcesb) Marketdataandanalysesfrompreviousworkc) Newinterviewdata

a) Informationavailablefrompublicsources

Goodinformationisavailablefrompublicsourcesthatwillbeusedinthisanalysis.Examplesinclude:

Vehiclesales

The“AsociaciónMexicanadeDistribuidoresdeAutomotores”(AMDA),the“AsociaciónMexicanadeLaIndustriaAutomotriz”(AMIA),the“AsociaciónNacionaldeProductoresdeAutobuses,Camionesy

Tractocamiones.”(ANPACT)togetherwiththe“SecretaríadeComunicacionesyTransportes”(SCT)andthe“InstitutoMexicanodelTransporteprovidedataonnewclass8vehiclessales(includingtrailers),thebreakdownintermsofdomesticproductionversusimportsandaguidetovehiclecharacteristicsandtechnologybaseline.

OverallFreightSystem

TheNorthAmericanTransportationStatisticsDatabasemanagedinMexicobythe“SecretaríadeComunicacionesyTransportes”isthemainsourceofdatafortheUnitedStates,Canada,andMexico.Datatablesaredividedupinto12categories,includingacountryoverview,transportationflows,safety,environment,trade,andinfrastructure.Thiswillbeourmainsourceofdatafordomesticfreightactivityandmerchandiseflows,allowingtherelativeimportanceofon-roadfreighttobeevaluated,bothintermsofitsrelationshiptototalnationalfreightflowsandallowingaMexico/US/Canadacomparison.Thedisaggregationbytypeofvehicleisnotmaintaineduptodateinthedatabase(mostrecentdatais2009),andhastobecomplementedwithdatafromsurveys(seebelow)

In-useVehicles

Inthesamevein,the“DirecciónGeneraldeAutotransporteFederal”(DGAF)providesstatisticsonheavydutyvehicleregistration(exceptfortherelativelyfewClass8highwaytractorsonstate-plates)butneedsdatafromsurveystobeabletodifferentiatethosethatarereallyincommercialuseonacontinuousbasis.

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TherearenoreliableGovernmentalorInstitutionalfiguresshowingthevehiclepopulationinMexicobyvocationandfleetsizeandwehavealwaysmeasuredsignificantdiscrepanciesbetweenvehiclepopulationnumbersderivedfromregistrationdataandtheactivefleetthatisinrealityfoundoperatinginthecountry.Whilstthetotalnumberofvehiclesthatwefindissurprisinglycongruentwithofficialnumberstherearesignificantdifferencesinsub-classificationamongstfleetuseofoldervehicles,whichtendtoberelegatedtoowner-drivers.Typicallytrucksgetamajorrebuildafter20-25years(maybewithsecond-handtrucksandpartsthatcomeintoMexicofromtheUSA)anditwouldseemthattheyareusuallyseenbytheirownersasnewertruckseventhoughtheycontinuetouseoldregistrationpapers.InMexicothereisnoagerestrictionforfreightvehicles.Between1951and1990thetotalnumberofClass8vehiclessoldinMexicowas139,756;sofortheregistrationnumberstobevalidin-usevehicles,itwouldmeanthateverytrucksoldsince1951wouldhavetobestillinservice,whichwouldbehighlyunlikelyandnotsubstantiatedbyourregular,extensivefleetinterviews(seebelow).

MobileSourceEmissions

TheINECCstudy“ElaboracióndelInventarioNacionaldeEmisionesdeFuentesMóvilesparaMéxico2013yproyección2030medianteelusodelmodeloMOVES”andotherrecentmobilesourceemissionsinventorystudieswillbeusedasabasisforestimatingtheGHGandcriteriaemissionsfromClass8tractortrailers.TheanalysiswillusetheEFFECTemissionsmodule(COPERTIV)calibratedtonationalinventoriesfollowingthe“GuiaMethodologicaparalaestimacióndeemisionesvehiculares“developedbytheINECC,SEMARNAT,andWesternGovernors’Association.ThisExcel-basedvehiclefuelconsumptionandemissionsmodelwasdevelopedbyJohnRogersfortheWorldBank,hasbeenusedinpeer-reviewedstudiesinover18countriesandisfreelyavailablefromtheWorldBank,whoalsooffersfree,self-pacedon-linetraining.

b) InformationavailablefrompreviousstudiesconductedbyTSTES

TSTEShasperformedalotofdetailedstudiesinthisfieldoverrecentyearswhichprovideasolidbasisforthepresentanalysis.

MacKayDataMacseriesofstudies

TSTESconductsadetailedstudyoftheheavydutyfleetutilization(includingClass8highwaytractorsandtrailers)andrepairpracticesinMexicoeveryfouryearssince1992forMackay&Company,Lombard,Illinoiswhoprovideittoheavydutyvehiclemanufacturersandcomponentsuppliers.Thestudyishighlydetailedandextensiveinvolvingcomplexquestionnairesofaround11pagescontainingquestionsrelatingtoaround300differentcomponentcategoriescontaining1130discretevariables.Itrequiresperson-to-personinterviewsofdifferentmanagerswithineachfleetsorganizationtovalidate

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fromtheirrecordsvehicleusageandmaintenancepractices.Thisinformationisanalyzedbyfleetvocation,sizeoffleet,typeandageofvehicle.

Themostrecentstudywas2015.MacKayispermittingustosharethevehiclefleetdatafromthisstudywithyouprovidedthatitisreferencedtoMackay&Co.

TSTES/INECCin-usefleetstudies

In2011,TSTESperformedanation-widestudyfortheINECCentitled“Caracterizacióndelaflotamexicanadevehículos”.Theobjectiveofthisstudywastocharacterizethecompositionofthefleetofheavyvehicles,defineenergyefficiencyindicators,andevaluatethecostsandbenefitstothefleetoperatorderivedfromtheuseandpossessionofheavydutyvehicles.Thestudyfedintotheclimatechangeanalysistoimprovethedataonthisimportantsector.

Thisstudyinvolvedface-to-faceinterviewswith599fleetsofwhich86owned/used4,819Class8heavydutyhighwaytractors.Afurtheranalysisin2012focusedonthe“longtail”ofsmallfleetsandowneroperators.Itinvolved318operators/fleetsofwhich46ownedatotalof2856Class8highwaytractors.

ThestudiesarepubliclyavailableandtheirdatanicelycomplementthefieldworkoftheDataMacseriesformanyoftheanswersrequiredinthepresentstudy.

GIZScrappageStudy

This2014two-partstudyperformedbyTSTESlookedatcommercialvehiclescrappageprogramsinMexico,andcomparedtothoseinothercountries.Assuchitprovidesanimportantinsightintotheoperationoftheseprogramsandwhatwouldbeneededtomakethemmoreeffective.

ThestudyinvolvedinterviewswithallthescrappagecentersinMexico(thathandledheavydutyvehicles)lookingattheprocess,paperworkinvolved,prices,publicity,controlbySHCP-SAT,SCT,SEMARNAT,otherFederalandStateauthorities.Itinvestigatedthenumberofvehiclesthathadgonedownthisroute,thecomplexityforthevehicleownerandtheinvolvementofOEMDistributorsinthescrappageschemes.Itlookedatthefinancialviabilityoftheexistingscrappageprogramsandhowthiscouldbeimproved.

Thestudiesarealsopubliclyavailableandprovideusefulinputtosomeofthequestionsposedinthisstudy.

c) Newfieldsurveyandinterviewdata

Whilsttheinformationdescribedaboveprovidesanswerstomanyofthequestionsinthisstudy,additionalfieldworkwasrequired(i)tofillgaps,(ii)refreshsomeoftheolderinformation,and(iii)

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validatewherepreviousfindingsarestillfunctional.Thiswasconductedinaseriesofface-to-faceinterviewsasdescribedbelow:

1. Person-to-personinterviewswithasampleoffleetsandsmalloperatorstoquantifyresponses.2. Person-to-personinterviewswithotherstakeholderstocapturetheiropiniononthewiderange

ofthemescoveredbythiswork.

Whilstthefleetsurvey(item1above)werestructuredtoquantifyresults,anopeninterviewguidewasusedwiththeothers(item2above),togeneratemainlyqualitativeinformation.

HowtheactivepopulationofHighwayTractorswasdetermined

Theregisteredpopulationofvehiclestakenfromtheemissionoflicenseplatesmaygivevalidnumbersforthetotalparcinexistence,butcannotgiveinformationonthosethatarereallyinactiveuse.Forthis,otherdatasourcesareneeded.

TSTEShasconductedadetailedstudyoftheheavydutyfleetutilization(includingClass8highwaytractorsandtrailers)andrepairpracticesinMexicoeveryfouryearssince1992forMackay&Company,Lombard,Illinoiswhoprovideittoheavydutyvehiclemanufacturersandcomponentsuppliers.Thestudyishighlydetailedandextensive,involvingcomplexquestionnairesofaround11pagescontainingquestionsrelatingtoaround300differentcomponentcategoriescontaining1130discretevariables.Itrequiresperson-to-personinterviewsofdifferentmanagerswithineachfleets’organizationtovalidatefromtheirrecordsvehicleusageandmaintenancepractices.Thisinformationisanalyzedbyfleetvocation,sizeoffleet,type,andageofvehicle.

Themostrecentstudywas2015.MacKayispermittingustosharethevehiclefleetdatafromthisstudywithyouprovidedthatitisreferenced(cited)toMackay&Co.65

Theuseofthesefindingsisimportantbecauseitistheonlystudythatclearlyidentifiestheactualactivein-usevehiclefleet,ascomparedtothelicenseplatestatisticscollatedbySCTofregisteredheavydutyvehicles.

Thestudyinvolvesaverydetailedface-to-faceinterviewwith37066fleetsofallsizesdistributedin9localities(seeTable74)and8vocations(seeTable75).Ofthesein2015,132fleetsown/operateatotalof7,370Class8HighwayTractors.TheotherfleetsinthesampleoperatedheavydutyvehiclesbutnotClass8HighwayTractors.Figure56showsthenumberoffleetsinthissamplebyfleetsize.

65PleaseciteasSource:Mackay&Company,Lombard,Illinois–DataMac-Mexico201566Thenumberofinterviewsshownforface-to-faceandtelephonearefromthe2015studyresults

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Table74-Face-to-faceInterviewdistributionCity StateDFandZMVM DFandMexicoMonterrey NuevoLeónGuadalajara JaliscoTorreón CoahuilaLeón GuanajuatoTijuana BajaCaliforniaSanL.Potosí SanLuisPotosíNuevoLaredo TamaulipasJalapayCoatzacoalcos Veracruz

Source:TSTESstudyforMackay&Company,Lombard,Illinois–DataMac-Mexico2015

Table75-VocationSegmentOwner-operatorForHire-GeneralFreightIndustryandCommerceConstructionandMiningAgricultureGovernmentBusandCoachOperatorsOthers



Figure56-Numberoffleetsinthesamplebyfleetsize(DataMac2015)

0 20 40 60 80 100 120

0to5

6to20

21to50

51to100

101to250

251to500

501andover

NumberofFleetsinSample

Fleetsize

(veh

icles)

Numberoffleetsinthesamplebyfleetsize

Numberofhighwaytractors

NumberofVehicles

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Thisstudyiscomplementedbyanadditionalsimplertelephoneinterviewwith4,210fleetoperators(sampledfromTELMEXrecords)distributednationallyacross32states.Thisextensive,telephonesurveyoffleetoperatorsenablesestimationoftheactivein-useheavydutyvehiclepopulationinMexicobyvocation,vehicletype,andfleetsizebasedonrealnumbersfromasignificantlylargesampleoffleets(seeTable76).

Table76-TelephoneInterviewsbyCategorySegment Telephone

InterviewsGeneralFreight 1386IndustryandCommerce 992ConstructionandMining 848BusOperators(urban,suburban,schoolandcompanyservice)

664

Coachoperators 320Source:TSTESstudyforMackay&Company,Lombard,Illinois–DataMac-Mexico2015

Thestudygeneratesasmallerin-usepopulationthanthatgivenbySCT’sregistrationnumbersasitisbasedonthenumber(andage)ofvehiclesthateachfleetreportstobeusinginactiveservice.Thecalculationmechanismtoextrapolatesurveyresultstonationalfiguresisbasedonthepremisethateveryactivefleethasatleastoneassociatedtelephonenumber.

Theresultantparc(186,000units)is70percentoftheregisteredvehicles.ItsdistributionbyvocationandfleetsizeisshowninTable77.NotethatthefleetsizesshowninthistableareforthenumberofmotorizedClass6,7,and8goodsvehiclesinthefleet(rigidtrucksandhighwaytractors).Thenumberoftrailersandsemi-trailersthateachfleetowns/usesisnotincluded.

Table77--ActiveparcofHighwayTractorsin2015(MacKaystudy)

NumberofHighwayTractorsperVehicleFleetinMexico-April,2015 Vocation FleetSize 1–20 21–50 51–100 101–300 >300 TotalOwner/Operator 5,230 0 0 0 0 5,230ForHire 2,084 7,039 12,882 32,190 59,579 113,775Industry&Commerce 1,749 4,846 11,913 15,648 15,254 49,410Construction&Mining 2,241 1,025 1,582 2,635 1,616 9,100Agriculture 1,283 1,331 2,651 1,744 0 7,010Government 412 1,003 95 159 72 1,741 Total 12,999 15,245 29,124 52,377 76,521 186,266


TheMacKayseriesisoneofthelargestheavy-dutyvehiclestudiesinMexico.Itprovidesusefulin-usefleetinformationthatcanbecomplementedbyotherstudyresultsfromTSTESthatareavailableforthis

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analysis(INECC,2011andGIZ,2014).However,additionalfieldworkwasrequiredtoprovideanswerstosomeofthespecificquestionsposed.

Accordingly,asurveywasconductedof44fleetstofillthesedatagaps.Whilstnotstatisticallyrepresentativeofthetotalparc,thisanalysisof19mid-sizetolargefleets,and25small,orowner-driveroperationsgivessomeinterestinginsights,asshownbelow.Figure57showshowthe44fleetsinthesampleareconfiguredbythenumberofhighwaytractorsineachfleet.

Figure57-Numberoffleetsinthesamplebyfleetsize(ICCTsurvey)

AlltheuncitedtablesandgraphscomefromthisICCTstudy.Theresultsareinterposedwithinformationfromthepreviouswork—whicharealldirectlycitedtotheircorrespondingstudies.

ActivepopulationofHighwayTractorsinthecurrentsurvey

TheICCTsurveycoveredfleetsthatbetweenthemhave4650highwaytractorsinoperation,splitprimordiallybetween“ForHire”transportfleetsthattransportotherpeople’sgoodsand“IndustryandCommerce”thattransporttheirowngoods.ThecompletelistofvocationalclassesusedinthisanalysiswasgiveninTable75andTable78showsthenumberofhighwaytractorsinthesamplebyvocationandbymodelyear.Overhalfofthesamplewerefoundtobeof2013ormorerecentmodelyear.

0 5 10 15 20 25

0to5

6to20

21to50

51to100

101to250

251to500

501andover

NumberoffleetsinthesampleNumbe

rofh

ighw

aytractorsinth

efle

et

Numberoffleetsinthesamplebyfleetsize

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Figure58-NumberofHighwayTractorsinthesample

0

500

1000

1500

2000

2500

NumberofHighwayTractorsinthesamplebymodelyearofvehicle

2015&later 2013- 2014 2009- -2012 2005- 2008

2001- 2004 1997- 2000 1993 - 1996 1989- 1992

1985 - 1988 1981 - 1984 1977 - 1980 1973 - 1976

1972&earlier

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Table78-NumberofHighwayTractorsinthesample

HighwayTractors

Numberofvehicles ForHire Industry&Commerce


Operator Other Total %

2015&later 675 620 215 0 0 1 1511 32.5%2013-2014 505 588 167 2 0 25 1287 27.7%2009--2012 320 413 0 2 5 0 740 15.9%2005-2008 243 264 3 6 9 0 525 11.3%2001-2004 93 180 7 3 2 0 285 6.1%1997-2000 138 41 3 0 0 0 182 3.9%1993-1996 22 30 0 6 2 0 60 1.3%1989-1992 6 7 0 0 0 0 13 0.3%1985-1988 3 39 0 0 3 0 45 1.0%1981-1984 0 0 0 0 2 0 2 0.0%1977-1980 0 0 0 0 0 0 0 0.0%1973-1976 0 0 0 0 0 0 0 0.0%1972&earlier 0 0 0 0 0 0 0 0.0%TOTAL 2005 2182 395 19 23 26 4650 100.0%

Figure59showstheaveragenumberofhighwaytractorsperfleetbymodelyearinthis(ICCT)study.Figure60showsforthissample,therelationshipbetweenfleetsizeandtheaverageageofthehighwaytractorsthatcomposethefleet.Unsurprisinglythelargerfleetstendtohavethenewervehiclesandtheoldestvehiclestendtoberelegatedtothesmallestfleets.Thisisgenerallytrueforallvocations.

Figure59-AveragenumberofHighwayTractorsperfleetbymodelyearinthesample

0102030405060708090

H.Tractors 2015yposteriores

2013- 2014 2009- -2012 2005- 2008 2001- 2004 1997- 2000 1993 -1996

1989- 1992 1985 -1988

AveragenumberofHighwayTractorsperfleetbymodelyear

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Figure60-Averageageofhighwaytractorsineachfleetagainstthenumberofhighwaytractorsineachfleet(ICCTsample)

Thesedataarefromthesmallsampleofthisstudy,howeverwecanusetheMacKaydatatoquantifythetotalactiveparc.

ActivepopulationofSemi-trailersinthecurrentsurvey

TheMacKayseriesofstudiesarefocusedprincipallyonmotorizedunitsandgeneratelessinformationonsemi-trailerssoadditionalquestionswerecoveredintheICCTsurvey,albeitwithasmallersample.

Thefleetscoveredinthe(ICCT)surveyhaveatotalof9,176semi-trailers,splitprimordiallybetween“IndustryandCommerce”(with4,895units)and“ForHire”with3,562units.Figure61andTable79showthenumberofsemi-trailersinthesamplebyvocationandbymodelyear.Themodelyearrangewithmostunitsis2005to2008with2,464semi-trailers(27percentofthesample).Since2012,saleshavebeenpickingbackupbutarestillshowinglessin-usepopulationthanthisperiod.Almost80percentofthesamplewerefoundtobeof2005ormorerecentmodelyear.

0

5

10

15

20

25

30

35

0 200 400 600 800 1000 1200

Averageageofhighw

aytractorsinth

efle

et

Numberofhighwaytractorsinthefleet

Averageageofhighwaytractorsineachfleetagainstthenumberofhighwaytractorsineachfleet(ICCTsample)

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Figure61-NumberofSemi-trailersinthesample

Table79-NumberofSemi-trailersinthesample

Semi-trailers

Numberofvehicles ForHire Industry&

CommerceConstruction&Mining Agriculture Owner-

Operator Other Total %

2015&later 601 920 230 0 0 2 1753 19.1%2013-2014 674 973 178 0 0 6 1831 20.0%2009--2012 490 551 124 6 3 0 1174 12.8%2005-2008 837 1518 97 4 8 0 2464 26.9%2001-2004 393 546 3 4 6 16 968 10.5%1997-2000 341 230 5 2 3 0 581 6.3%1993-1996 145 96 3 0 1 0 245 2.7%1989-1992 27 19 4 4 1 0 55 0.6%1985-1988 41 41 0 3 3 0 88 1.0%1981-1984 10 1 0 1 2 0 14 0.2%1977-1980 2 0 0 0 0 0 2 0.0%1973-1976 0 0 0 0 0 0 0 0.0%1972&earlier 1 0 0 0 0 0 1 0.0%TOTAL 3562 4895 644 24 27 24 9176 100.0%

0

1000

2000

3000

4000

5000

6000NumberofSemi-trailersinthesample

bymodelyearofvehicle

2015&later 2013- 2014 2009- -2012 2005- 2008 2001- 2004

1997- 2000 1993 - 1996 1989- 1992 1985 - 1988 1981 - 1984

1977 - 1980 1973 - 1976 1972&earlier

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1. AssociationofAmericanRailroads(https://www.aar.org/2. ElEconomista(eleconomista.com.mx/)3. ElFinanciero(http://www.elfinanciero.com.mx)4. Forbes(https://www.forbes.com.mx)5. GIZFreightTransportNAMAsinCOLandMEX(http://ccap.org/assets/Schmid-Freight-

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(http://imt.mx/archivos/Publicaciones/PublicacionTecnica/pt461.pdf)8. Mackay&Company,Lombard,Illinois–DataMac-Mexico2015

(http://www.mackayco.com/news/2015/12/2/mackay-company-releases-2015-datamac-mexico-report)

9. NorthAmericanTransportationStatistics(NATS)(http://nats.sct.gob.mx)On-LineDatabase.ProducedbytheNorthAmericanTransportationStatisticsInterchange,atrilateralinitiativeamongthetransportationandstatisticalagenciesofCanada,theUnitedStatesandMexico

10. SCTCoordinaciónGeneral.dePuertosyMarinaMercante.EstadísticamensualdeMovimientoPortuario2014.(http://www.sct.gob.mx/fileadmin/CGPMM/U_DGP/estadisticas/2014/Mensuales/12_diciembre_2014.pdf)

11. SCTTransporteyMedicinaPreventivaAutotransporteFederalEstadisticaBásica2016(http://www.sct.gob.mx/transporte-y-medicina-preventiva/autotransporte-federal/estadistica/2016/)

12. SCTDireccióngeneraldeTransporteFerroviarioyMultimodalAnuarioEstadísticoFerroviario2015(http://www.sct.gob.mx/fileadmin/DireccionesGrales/DGTFM/Anuarios_DGTFM/Anuarios_pdf/Anuario_2015.pdf)

13. SEMARNATAccionesyProgramasProgramadeTransporteLimpio(http://www.gob.mx/semarnat/acciones-y-programas/programa-de-transporte-limpio-26305)

a. ProgramadeTransporteLimpioPoruntransportemáscompetitivoyunambientemáslimpio(http://www.usmexicoborder2012.org/files/Task_forces/AMContreras-TransporteLimpio.pdf)

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b. EstatusdelPrograma(http://www.semarnat.gob.mx/sites/default/files/documentos/calidadaire/documentos/2015/estatus-del-programa.pdf)

c. ProgramaGEIMéxico(http://www.geimexico.org/acerca.html)14. U.S.DOTFederalHighwayAuthorityFreightFactsandfigures2013

https://ops.fhwa.dot.gov/freight/freight_analysis/nat_freight_stats/docs/13factsfigures/pdfs/fff2013_highres.pdf)(

15. U.S.EPASmartWay(https://www.epa.gov/smartway)a. Trends,IndicatorsandPartnerStatistics

(https://www.epa.gov/sites/production/files/2016-05/documents/smartway_tips_trends_indicators_partner_stats.pdf)

b. SmartWayProgramSuccesses(https://www.epa.gov/smartway/smartway-program-successes)

16. U.S.DepartmentofTransportation,BureauofTransportationStatistics,TransBorderFreightData.(https://transborder.bts.gov/)

17. WorldTradeOrgnizationInternationalTradeStatistics2015(https://www.wto.org/english/res_e/statis_e/its2015_e/its15_toc_e.htm)

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