Keep on trucking

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UD Trucks’ presence in Malaysia has spanned nearly 40 years through the collaboration with distributor TCIE.

Automotive technology has always been the highlight at any international motorshow, especially when it comes to smart driving.

So when Tesla chief executive Elon Musk unveiled its all-electric heavy-duty truck in November, it got the whole global trucking community talking.

In fact, the company has already received pre-orders for its electric big-rig from major players like Walmart and PepsiCo — the largest order so far is from UPS, which is buying 125 units as part of the courier company’s plan to expand its fleet of alternative-fuel vehicles.

Bear in mind that a unit of Tesla e-truck, expected to be in production by 2019, would cost around US$200,000 — making UPS’ purchase worth a cool US$25 million.

Analysts have estimated that at present, the global truck market is valued at beyond US$400 billion. With fuel-alternative technology and advancement in automation like what Tesla is doing, this market could almost double its worth in savings over the next five years.

It is also said that the Tesla e-truck is likely to be semi-autonomous — meaning that at certain points along a journey, it may not need a driver for manoeuvring.

This future feature could stand as turning point for the global truck industry, which is now struggling with serious shortage of skilled drivers.

The situation between self-automated cars and self-automated trucks is vastly different — the latter may kill off whatever vacancy there is left for truck drivers.

The key word here, however, is ‘may’.

 

Still far away

According to UD Trucks Group Asia Sales-Malaysia managing director Filip Van den Heede, the ‘driver-less’ concept would progress quicker in the car segment than in the commercial vehicle segment.

Moreover, it is still in testing phases in some countries and even if full-scale production commences, not everyone could adopt them at the same time due to a variety of factors — transport policies, taxes and insurance mechanisms that are yet to be reformed, readiness of road infrastructure, drivers’ training and awareness, and public education.

“Many countries still have a long way to go in improving these factors,” says Van den Heede, stressing that trucks drivers are definitely vital not just to the commercial vehicle industry, but also to the functioning of society as a whole.

Without these drivers, he says construction and development would stall, and consumer goods and commodities would be stuck at ports and factories.

“The importance of truck drivers as the lifeblood of the economy often go unnoticed — but whenever there is an accident involving trucks, the public would be quick lay blame on the drivers,” he points out.

Despite not being directly involved in the road transport operations, many commercial vehicle manufacturers like UD Trucks, feel the impact.

For these companies, the role that they can play in tackling this issue is to run specific programmes for the drivers engaged by their clients.

According to Van den Heede, the people at UD Trucks know that developing quality truck drivers is very important given their roles in businesses and road safety.

“To support the drivers in their daily work and also to ensure our customers that their vehicles are being used optimally, UD Trucks has put in place series of training modules that address critical topics concerning them.

“We focus on vehicle handover to ensure a good understanding of all the functionalities on-board the trucks, on fuel efficiency and safe driving to bring the best performance out of the vehicles and last but certainly not least, on load securing techniques to prevent accidents where we can.

“At the request of the customers, UD Trucks also provides several detailed modules like dump truck driving and off-road driving as parts of our offer.”

 

Standing out from the crowd

Van den Heede adds that to strengthen this knowledge, UD Trucks organises the UD Extra Mile Challenge (UDEMC) as a holistic method that addresses the drivers’ skills, vehicle maintenance and performance — all of which contributes to the business bottom-line, efficiency and safety.

“The shortage of qualified and skilled truck drivers is a concern, not just in Malaysia but also in other countries. UD Trucks has been contributing to the growth of the commercial vehicle industry in Malaysia since 1978 and the issue of driver shortage definitely concerns us as well.

“Thus, the reason we initiated UD Extra Mile Challenge last year in Malaysia as well as in other countries where we serve, was to provide a platform to train and enhance the skills of truck drivers via a competition format,” he says.

Van den Heede says the UDEMC is meant for the company to partner with its clients in giving them a comprehensive approach towards improving fuel economy and profitability, starting at the grassroots — the drivers. It also instils a sense of appreciation in the drivers when they understand that their job is very important.

He also observes that with many developments earmarked to boost the nation’s growth such as the Pan Borneo Highways for Sarawak and Sabah, the Logistics-Trade Facilitation Masterplan and also Digital Free Trade Zone (DFTZ), this would create higher demands for good truck drivers.

Another move by UD Trucks is through Telematics — a high-technology wireless communications system, which is supported by the group’s network of dealers and specialists.

It was introduced in Malaysia in conjunction with the launch of UD Trucks’ all-new medium-duty series, the Croner, in August this year.

“Through UD Telematics, our clients would be able to monitor their trucks and locations, as well as address the maintenance needs as and when required.

“The system offers safety support for truck operations, fuel efficiency improvement, maximisation of uptime/downtime and reduction of operational cost,” says Van den Heede.

UD Trucks’ presence in Malaysia has spanned nearly 40 years through the collaboration with distributor Tan Chong Industrial Equipment Sdn Bhd (TCIE). Its market share for heavy-duty trucks segment in the country covers 10 to 15 per cent while for the medium-duty trucks, it is between 25 and 28 per cent. It benefits from TCIE’s extensive network of 43 service centres and dealerships nationwide — with four each in Sarawak and Sabah.

Elaborating further on technology, Van den Heede says UD Trucks also emphasises on smart drivability, without sacrificing safety and efficiency.

In fact, it underlines these two aspects, given the fact that long-haul trucking can wear a driver out.

“Through this technology, the driver would be more alert and less stressed; thus, reducing risks of accidents and ensuring client’s satisfaction.”

 

Boost from mega developments

On the positive side, UD Trucks also sees prospects in mega developments that would require the service of good trucks — and good drivers.

“Sarawak and Sabah, combined, is an important market for UD Trucks. We will continue the progress of our established presence there and introduce newer truck models in time to come to further grow in the light, medium and heavy-duty truck segments. Currently, our sales volume is about 100 units – both for heavy-duty Quester and medium-duty Croner – in Sarawak and Sabah.

“Some of the segments that our customers are in include construction, logistic, public services such as the power supply providers that need heavy vehicles to mount generators to carry to the rural areas, and also agriculture,” says Van den Heede.

On Pan-Borneo Highway project, he believes that this is an area where UD Trucks can play a significant role in.

“I was in Kuching in September for the launch of our medium-duty truck, the Croner, where I got the chance to learn more about the packages under this mega development.

“For us, it’s straightforward — where there are constructions especially in growth markets like Malaysia, that’s an opportunity for UD Trucks,” says Van den Heede.

The authorised distributor of Mitsubishi FUSO trucks Mercedes-Benz Malaysia is already capitalising on this prospect.

According to Mercedes-Benz Malaysia vice-president for commercial vehicles Albert Yee, the sales of the company’s commercial vehicles and the FUSO trucks in Sarawak and Sabah is represented by Hap Seng Commercial Vehicles Sdn Bhd in Kuching, Miri and Kota Kinabalu; while Sin Young Huat Motors Sdn Bhd handles the sales of only the FUSO range. As far as sales and services for its commercial vehicles nationwide, it has 15 dealership outlets while for FUSO, there are 49 dealerships across Malaysia.

“Though these dealers, we are actively engaging the key players involved in the Pan Borneo Highway mega project. Hap Seng Commercial Vehicles is also packaging its offers of our trucks with attractive financing rates, for prospective customers,” he says.

The story of FUSO in Malaysia began back in 2004 when Daimler (formerly known as Daimler Chrysler) acquired the majority of shares in Mitsubishi FUSO Trucks & Bus Corporation. The move made the corporation a fully consolidated business unit of Daimler — the world’s largest commercial vehicle manufacturer.

Following the global business shift, Mitsubishi FUSO began its operations in Malaysia in 2005, following the takeover from USF-Hicom.

An assembly plant was later built in Pekan, Pahang, meant to manufacture up to eight different vehicle models to cater to different market needs.

“Today, the synergy between the capabilities of Mitsubishi FUSO and the expertise of Mercedes-Benz Malaysia has made it possible for us to deliver a comprehensive range of products for any business,” says Yee.

Nevertheless, he also acknowledges the issues revolving around the global shortage of skilled drivers.

“Yes, the transportation industry is rapidly changing with autonomous driving and electric vehicles — in the future, drivers may very well operate a few trucks at any one time.

“On our part, we have been enhancing the driver’s skills by providing training in accordance to our standards. Bi-annually, we hold a driving and skills-based competition to further motivate and harness the skills of drivers and service executives to the highest levels.

“To us, developing good driving habits is just as important as maintaining a truck.”

Yee with Mercedes-Benz’s heavy-duty truck Actros and the Canter, one of Mitsubishi FUSO’s range of light-duty commercial vehicles.

 

Prospects in infrastructure projects

For another recognisable truck brand Isuzu, its dealership network is strategically located along the spine of the Pan Borneo Highway.

“This allows us to provide timely and efficient support to the infrastructure project,” says Isuzu Malaysia chief executive officer Koji Nakamura.

He believes that with the new Pan-Borneo Highway coming on-stream, there would be greater growth and more significant movement of goods via land. This, in turn, would serve as an invitation to the big players. Thus, now is the time for the small and medium transporters to build up their network and capabilities further.

Beyond the borders, Nakamura envisions that the trucking industry would be facing a make-over over the short to the medium-term.

“In Peninsular Malaysia, with the rationalisation of the Asean Free Trade Agreement (FTA), our borders will be more open to foreign operators and as such, local players will need to up their game to be competitive.

“This includes Isuzu Malaysia as well.”

Isuzu Malaysia established its nationwide dealership network in 2005 to provide retail and after-sales support for its pick-up truck (D-Max) and in 2010, it added light-duty trucks (N-Series) to its portfolio. In 2012, it introduced medium-duty trucks (F-Series) to the line-up, while its heavy-duty trucks (Giga) completed range in 2014.

Sabah and Sarawak currently have 12 outlets and one regional office based in Kuching to ensure quicker response time to any requirement that Isuzu’s clients may have.

“Our network in Sabah and Sarawak are also linked with our ‘Dr Mobile’ facility, where we are able to respond to calls for and provide technical assistance nationwide, 24/7.

“In Sarawak alone, we have outlets in Kuching, Sibu, Bintulu and Miri, as well as service facilities in Limbang,” says Nakamura.

Isuzu’s introduction of its heavy-duty trucks in mid-2014 signified its journey towards capturing significant market share in Malaysia by gathering more information about the needs of heavy-duty truck customers.

This eventually culminates into the brand having succeeded in clinching the 38 per cent market share in truck segment for the first 10 months of the year — securing its position as the truck brand of choice in Malaysia.

“The mainly contribution is our best-selling ELF light-duty truck and Forward medium-duty truck,” adds Nakamura, who took over from Kenji Matsuoka as Isuzu’s head of Malaysia in October this year.

The outlook remains positive for Isuzu as the company is looking at an improved position in the next fiscal year, despite the expected further contraction of the market, adds Nakamura.

“With current concerns regarding uncertain fuel prices, increasing cost of raw materials and higher transportation costs, Isuzu products have been offering our customers genuine solutions in terms of lowering their operating costs, low down-time and the ability to provide reliable delivery performance. We will continue to appeal these strong characteristics to our customers in order for us to achieve our sales volumes.

“We remain optimistic — we continue to appeal to our customers based on our product’s core values of fuel efficiency, durability and reliability.”

 

Comprehensive measures

Hino Motors Sales (Malaysia) is also geared up for the future, as seen in its planned establishment of a Unit-In-Operation (UIO) Business meant for growth and sustainability development.

Van den Heede says UD Trucks Telematics is a system that offers safety support for truck operations, fuel efficiency improvement, maximisation of uptime/downtime, and reduction of operational cost.

The announcement, which was highlighted during its dealers’ conferences and meetings in the beginning of this year, came at such an opportune time — Hino Malaysia is celebrating its 40th anniversary this year.

“Throughout the years, we have experienced tremendous growth and have dedicated our efforts in promoting the Hino brand. Building up the network of 3S (sales, service and spare-parts) has been a significant journey for Hino Malaysia which has, since 1977, become one of the largest sales/after-sales networks (for trucks) in the country,” says Hino Malaysia managing director Ken Iwamoto.

In November, Hino Motors Ltd Japan president Yoshio Shimo visited Hino Total Support Customer Centre (HTSCC) in Sendayan, Negeri Sembilan where he witnessed the newly-completed office building that housed the training classrooms, the Hino Gallery as well as the engine and materials showcase area.

The 700m, velodrome-resembling driving track, which was opened in April his year, sits on top of an area covering 39,600 square metres.

The HTSCC is touted as the first of such training facility outside Japan.

Describing it further, Iwamoto says the facility has an exclusive driving track incorporating straight, curved and angled routes, uphill and downhill manoeuvrings for drivers to learn the correct ways of utilising gear changes, exhaust brake and braking techniques including on wet roads, as well as night-drive training.

It appears that having skilled drivers is also a priority for Hino Malaysia.

“Looking ahead, HTSCC intends to expand the training programmes further and anticipate participation to reach over 2,800 people through the inclusion of new training programmes.

“Also in the pipeline is our plan to organise our very own ‘Driver Skills Contest’ where we would invite various companies to join in promoting driver’s skills in safety driving and eco-driving techniques.

“Going forward, we have plans to develop the HTSCC to another level through joint collaboration with the government through Ministry of Transport and agencies such as the Malaysian Institute of Road Safety (Miros), in that we are pursuing towards HTSCC to become a government-certified training facility for commercial vehicle drivers in Malaysia,” says Iwamoto.

In this respect, Hino Malaysia has already established its ‘Total Support Contest’ (TS Contest) — an annual event that allows participants to network in order to enhance their customer-servicing skills and technical expertise, as well as to exchange knowledge on ways to improve Hino dealership operations.

Early this month, it hosted the fourth-year edition of the challenge, which gathered 110 contestants from over 100 Hino dealerships.

“Overall, participants are required use their skills and knowledge to take on the challenge. Speed is also an essence as they must complete tasks within a given time.

“Speed is one of our fundamentals in aiming towards commitment and promise of the ‘Two Values’ of 100-per cent vehicle uptime — maximising vehicle’s operation time and minimising vehicle’s lifetime cost,” says Iwamoto.

Technology is also the name of the game as far as Toyota’s outlook for the truck industry is concerned.

In summer this year, the automaker deployed ‘Project Portal’ at the Port of Los Angeles in California, the US, to conduct drayage operations — short-haul cargo movements in and around the port — as part of a feasibility study on the performance of fuel-cell vehicles (FCVs) in heavy‐duty applications.

According to Toyota Motor Asia Pacific, Project Portal is a hydrogen-fuel cell system designed to power a heavy-duty truck proof of concept.

The platform uses two Toyota Mirai fuel-cell stacks and an additional 12kW battery to power the concept.

“Toyota regards hydrogen as a significant energy source for the future with a wide range of potential applications. It can be generated from various primary energy sources, as well as from water using solar, wind or other natural energy. Hydrogen also has a higher energy density than electricity, is easy to store and transport, and can also be used for power supply purposes.

“Hydrogen is already widely produced and used in industry. For example, much hydrogen is used in the production of ammonia. Also, hydrogen is produced when petroleum is purified at oil factories to make gasoline.

“Still, we need a long-term view until hydrogen is widely used as a fuel. Having said that, we think the usage of hydrogen would grow gradually,” says its spokesperson.

The study timeline Toyota’s Project Portal is open-ended, but the company will provide updates on its progress and the performance of the proof-of-concept on a regular basis.

“We regard FCVs as a key field of research and development and will continue stepping up our efforts in moving towards a sustainable hydrogen-based society. Additional to Los Angeles, FCV feasibility studies are also being conducted in Australia, Canada, the United Arab Emirates and China,” says Toyota Motor Asia Pacific.

 

Humanising the industry

The argument on technology and its impact on trucking continues pertaining to smart driving and alternative fuel.

For UD Trucks, Van den Heede does not foresee the new vehicle concept to affect the plans and strategy for its range of trucks.

“Indeed, new concepts such as autonomous and electricity-powered vehicles, as well as smart platooning are great as the industry can only move forward with the advent of newer technologies.

“Although UD Trucks has not ventured into developing new concept vehicles, being under the Volvo Group, we learn more through knowledge-sharing on initiatives involving new innovations in driving, electro-mobility and connectivity.”

Still, skilled drivers remain — literally and figuratively — the ‘driver’ of this industry, he points out.

He says UD Trucks’ recommendation in overcoming this challenge is for the private commercial vehicle companies, associations, logistics/transport players and the relevant authorities to work together in developing a graduated commercial driver’s licensing programme to attract more young drivers to the industry, as well as to enhance the skills of those already in it.

“As an industry player, we need to help elevate the status of truck-driving as a good career; instil in the drivers a certain sense of prestige in the job. In Europe, which is a mature truck market, truck-driving is a highly-respected job. In this regard, it also makes sense to look into the wage level.

“I believe that eventually, there will be a change of perception and when this happens, the job will attract more people — men and women, young and old — all striving to become skilled and qualified truck drivers,” he elaborates.

At this year’s Tokyo International Motor Show running between late October and early November, UD Trucks provided a very interactive ambience at its exhibition lot to both its clients and the visitors, many of whom also brought their children along.

There were demonstration cabins, equipped with augmented reality (AR) decks, which were a hit among the visitors.

“Trucking is not like what it was decades ago. As a company, we are letting people know that it is a career with good benefits and remuneration.

“The opportunity is really there for the young people to take up truck-handling as a career. Bear in mind that with the relevant skills, the drivers are not just drivers — they are also engineers, logistics experts and mechanics all in one,” says Van den Heede.

As far as Mercedes-Benz Malaysia is concerned, truck drivers remain the integral part of the transportation industry.

“As I have said earlier, out on the road, driving habits are still among the key factors that affect the condition of the trucks,” says Yee.

On technology, he believes that the outlook is generally positive for electric vehicles.

In this regard, Yee says the FUSO eCanter — the third generation of the world’s first true electrically-powered light-duty truck — has already commenced series production this year and will be marketed first in the US, Europe and Japan before being introduced to other countries.

“We will definitely introduce the eCanter in Malaysia at the earliest possible instance. Actually, we already have a few of our fleet customers who registered their interest to be amongst the first to own eCanter in Malaysia upon its arrival in Malaysia.”

For Isuzu, it rests on its reputation of being the first Japanese truck range in Malaysia that comply with the stringent United Nations Economic Commission for Europe (UNECE) safety requirements.

The UNECE Regulation lays down the technical requirements for the approval of Advanced Emergency Braking Systems (AEBS) fitted on trucks and coaches.

According to a European study, the fitting of AEBS on trucks and coaches could save up to 1,000 lives per year and 4,000 serious injuries in the European Union (EU) alone, and many more worldwide. Known as the most stringent of all vehicle standards, the EU uses the UNECE Regulation as the basis for the approval of such systems.

“We are always innovating to give our customers the most advanced safety and technology,” says Nakamura.

On drivers, he still sees the stigma of them being regarded as having a ‘lowly profession’.

“On the contrary, this is a well-paid and rewarding profession in many countries where stringent regulations are in place to ensure that there is no exploitation of working conditions, environment or health benefits.

“As far as Isuzu goes, the welfare of drivers needs to be upheld — we recognise that the danger of exploitation far outweighs the need for profitability. Therefore, we create a working environment for drivers that is safe and ergonomic — conducive to allow them carry out their duties effectively. Our trucks are designed around the driver, and we offer numerous features in each vehicle that help reduce stress and fatigue.”

Nakamura also says Isuzu regularly conducts training and provides driving courses to its customers in all the markets that it operates in.

“We have a permanent facility in Japan where we host customer’s training sessions aimed at elevating the skills, attitude and capabilities of truck drivers.”

Nakamura also singles out overloading one of the most significant challenges that affects not only the industry, but society as a whole.

On this, he says Isuzu is working closely with the relevant authorities to help instil this awareness in truck operators.

“Our sales engineers offer advice on the best truck model to suit the load level required by the customers. Still, I think we still have quite a long way to go in bringing the industry to an acceptable level,” he adds.

On the other hand, Toyota Motor Asia Pacific states that the transportation systems based on automated-driving and social acceptance are being studied towards realising a number of goals.

For Toyota, the objective of developing automated-driving technology is to create a society in which mobility would translate to safety, efficiency and freedom.

“One key factor in doing so is removing each vehicle’s drawbacks and responding to diversity. Specifically, this would contribute to the complete eradication of traffic fatalities, viewed as the ultimate goal of a society that values mobility.

“Another goal is to realise smooth flow of traffic and eliminate problems such as traffic congestion. Also, the technology would provide mobility to virtually everyone — including senior citizens and individuals with special needs,” it adds.