main report - 40 mt tanker

8/2/2019 Main Report - 40 MT Tanker

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40 MT TANKER VIABILITY REPORT

Introduction:

Now a days transportation cost is overburdening to the manufacturing

industries. Freight costs and fuel surcharges can substantially cut profits,

and most companies are looking for ways to save money in these areas.

In this perspective, we have submitted a report on viability of using Heavy

tankers for transfer of molasses from Pudukottai plant & Pettavaithalai

plant to Sivaganga Plant. Here in this report we have compared existing

tankers (i.e. 27 MT) with 40 MT tankers.

Current regular capacities of tankers in the market:

There are two type of tankers availability in the market

1. Permanent carrier tankers

2. Trailer Mounted tankers.

Available permanent carrier tankers capacities in market:

1. 9 KL

2. 12 KL Maximum permissible limit of this tanker is 12 KL or 11 MT.

3. 16 KL Maximum permissible limit of this tanker is 16 KL or 15 MT

4. 18 KL (Customized) -

5. 20 KL - Maximum permissible limit of this tanker is 20 KL or 19 MT

6. 24 KL Maximum permissible limit of this tanker is 24 KL or 23 MT

Trailer mounted tanker:

1. Currently as per RTO Policies, a trailer can carry upto 35 MT of load.

Currently none one of the truckers are using this type of transport.

2. But these kinds of tankers are only available in Maharashtra & other

northern parts of India.

3. M/s Bharat tanks and vessels are manufacturing these tankers.

(Supporting document attached). We have asked for detailed

description of tanker and commercial details too, waiting for

feedback.

4. Currently some northern states are using these tankers fortransferring CO2 gas.


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Regional Transport Authority Rules (Tamilnadu):

As per the current rules and policies, permanent carrier tankers must carry

a maximum load of 22-23 MT. and a trailer can carry upto 35 MT at a time.

It should not cross beyond that limit. If we cross that limit, officially they will

seize permit of that vehicle. But unofficially permanent carrier tankers are

carrying upto 30 MT, by bribing in check posts.

Overloading Issues:

Here we have taken one reference from article (Road statistics of india,problems & solutions) of what will be the impact due to overloading.

One of the important factors responsible for poor roads is the problem of

overloading by the users. A typical study carried out for a few State

Highways indicated that as high as 12-40 percent of commercial vehicles

exceeded the prescribed laden weight and the gross weight recorded were

as high as 26-38 tonnes on the day of survey against permissible 22tones. The damaging effect of overloaded vehicles on road varies to the

fourth power of the axle weight. For example, 10 tones axle weight will

cause 16 times the damage as would be caused by a single 5 tones axle

weight. Inadequate road width means more number of repetitions of load

on the same lane width.

Government of India Initiatives for heavy trucks:

On experimental basis, Oil industry is operating approx 4 to 5 TTs of

capacities 35/40 KL and performance of the tank trucks has been foundsatisfactory. In view of the various advantages detailed above, induction of

higher capacity new generation vehicles with latest safety features should

be encouraged for transportation of POL products. However, prevailing

Petroleum Rules, 2002 restrict carrying capacity of petroleum products to

maximum of 25 KL. Oil Industry has been taking up the matter with the

Ministry of Industries for making necessary amendment to Petroleum Rules,

2002 to permit higher capacity tank trucks. Necessary inputs and data

sought by the Ministry have already been furnished. The approval is yet to

be received. Appropriate review of the road conditions should also beundertaken before issuing permits to operate trucks of bigger capacity and


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therefore at initial stages, only express highways should be considered for

permitting higher capacity tank trucks.

What other companies are doing in Tamilnadu?

1. Currently, M/s chemplast is using 24 KL tanker for transferringmolasses within plants by using M/s Murugan oil Corp tankers. As we

know that molasses density is 1.25, so we can load upto 30 MT in 24

KL tanker. This is possible, but it is

against the RTO policies.

Ashok Leyland 4023 XP (40

MT) Capacity New

Transportation System

Technical Specification of

Trailer for 40 MT:

Ashok Leyland 4023 XP model is a trailer. It will come with Cabins with 6

tyre front arrangements. We need to attach 18 tyre tanker. For keeping 40

MT tankers, we need to modify trailer back by attaching 3 axles extra to the

body. Vehicle *broacher attached as an annexure

Capital required for Vehicle: 31 Lacs

1. Trailer Cost : Rs. 18 Lacs

2. Modification cost: Rs. 7 Lacs

3. Tanker Cost: Rs. 6 Lacs

Features

Fuel Efficient 'H' Series CRS Engine G91 Suspended Cab Parabolic suspension in front Joggled frame with flanged fasteners

Applications

Market Load & Container Steel (Coils, Flats & Wires) Tip Trailer

Options


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Radial Tyres Fully built Options-Flat bed trailer, Tip Trailer, Skeletal Trailer & Bulker Cabin Colour Options - Casablanca White/Traffic Blue

Specifications

Engine HA 57L 165 CRS BSIII

Maximum Power 225 HP @ 2500 rpm

MaximumTorque

800Nm@1400-1900 rpm

Clutch 15" Dia RDC with Organic facing material

Transmission 6 Speed Over drive gear box with FGR 6.72:1

Front Axle Forged I Section reverse Elliot

Rear Axle Fully Floating single speed Hypoid with RAR 6.83:1

Frame Joggled frame with 5 cross members

SuspensionFront : Parabolic

Rear : Semi elliptic multileaf

Brakes Full Air Dual Line HLP brakes

Parking BrakesFlick valve operated pneumatic hand brake on rear wheelsonly

Fuel tankCapacity

400 lts Cross Linked Poly Ethylene Tank (XLPE)

Battery 24V 130 AH

Tyres 11.00 x 20 - 16 PR

Major Dimensions (in mm)

Wheel Base 3300

Overall Length 5670

Overall Width 2445

Front Overhang 1470

Rear Overhang 900

Front Track 2040

Rear Track 1870

Min. Ground Clearance 260

Min. Turning Circle Dia 13000

Performance


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Max Speed in Top Gear 91 KMPH

Maximum Gradeability 15%

Weight (Kgs)

Unladen Laden

Front Axle 3450 6000

Rear Axle 2450 10200

Total 5900 40200(with tri axle trailer)

Other specifications:1. Length of the body after attaching tanker will be 40 feet.

2. Total weight it can carry is 40 MT and vehicle body weight willbe 12 MT. So we need to have a weigh bridge minimum capacity of 60MT.

3. Total vehicle will consist 24 Wheels

38 MT tankers Costing Details:

Sl.n

o

VariableName

SubVariab

le

Formulas Workings Per KM

per

MTcost

1 Tyre Back No of tyres used X pertyre cost = total cost of

all tyres /lifeexpectancy of tyre inKm= total cost of tyre

per KM travelled

PER KM PER MT = Totalcost of tyre per KM

travelled/ Total Weightper load

18 Nos X Rs.22500 = Rs.405000/60000 Km = Rs.6.75 per Km

Rs. 6.75/ 37MT = Rs.

0.18

0.18

Fronts No of tyres used X pertyre cost = total cost of


per KM travelled

PER KM PER MT = Total

cost of tyre per KMtravelled/ Total Weight


Rs. 5.4/37MT = Rs.

0.15

0.15


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per load

2 Driver Wages

2driversNeeded

Drivers Wage per Trip/total load per trip =Driver wages per MT

Driver wages perMT/total Kms per load

Rs. 1700 /37 MT = Rs.45.95/ MT

Rs.45.95/110Km = 0.42

0.42

3 Diesel Per Litre DieselCost/Average Mileage =

Diesel cost per Km

Diesel cost per Km/totalload weight per trip

Rs. 45 / 2.25Km/lit = Rs.

20 Km

Rs. 20/ 37MT = Rs.

0.54

0.54

4 Insurance,

Maintenance &

Road Tax

0.20

5 Other Expenses

RTO Mamool, TrafficPolice & Supervisor

salary

0.10

6 Loanamount

Loan amount paid permonth/Total Vehicle

movement per monthin Kms

Loan amount per monthper Km/ total weight

per load

Rs.66340/2800

Km = Rs.23.69

Rs. 23.69/37MT = Rs.

0.64

0.64

Total 2.23

Assumptions made for calculations per KM per MT:

i. Each tyre cost is Rs. 22500

ii. Life expectancy of back tyre is 60000 Km

iii. Life expectancy of front tyre is 25000 Km

iv. Driver Wages is Rs. 1700 per Trip

v. Per litre Diesel Cost Rs. 45

vi. Average mileage of 4023 XP with load will be 2.25 Km/ Litre


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vii. No of loads per month is 28, so total vehicle movement in a month is2800 KM

viii. Expected Loan amount per month on the basis of capital expenditure:Rs.66340/month

Vehicle on road price: Rs.31 Lacs,

Initial amount invested byborrower: Approx Rs. 6 Lacs

Loan Amount given by Rs. 25Lacs

Rate of interest: 6.18%(for 4 Years)

Total Interest = Rs. 25 Lacs * 6.18 %* 4 years = Rs. 6.18 Lacs

Loan amount paid per month = (Total Loan + Total Interest) / 47months 31.18 Lacs/ 47 months

Rs. 66340 / Month

Ashok Leyland 2516 (27 MT) Capacity Old

Transportation system

Technical Specification of Trailer for 40 MT:


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Capital required for Vehicle: 21 Lacs (Rs. 2102267)

1. Vehicle cost + chassis cost: Rs. 15.73 Lacs

2. Tanker and other expenditure: Rs. 5.29 Lacs

Other Specifications:

1. Length of the body after attaching tanker will be 25 feet

2. Total weight it can carry is 27 MT and vehicle body weight willbe 10 MT. So we need to have a weigh bridge minimum capacity of 40

MT.


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3. Total vehicle will consist 10 Wheels

27 MT Tanker Costing Details:

Sl.no

VariableName

SubVariab

le

Formulas Workings Per KM

perMTcost

1 Tyre Back No of tyres used X pertyre cost = total cost of


per KM travelled



8 Nos X Rs.22500 = Rs.180000/45000 Km = Rs.

4 per Km

Rs. 4/27 MT= Rs. 0.15

0.15

Fronts No of tyres used X pertyre cost = total cost of


per KM travelled




Rs. 1.8/27MT = Rs.

0.06

0.06

2 Driver Wages

Driver+

Cleaner

Drivers Wage per Trip/total load per trip =Driver wages per MT

Driver wages per

MT/total Kms per load

Rs. 950 / 27MT = Rs.

35.18 / MT

Rs.

35.18/110Km = 0.31

0.31

3 Diesel Per Litre DieselCost/Average Mileage =

Diesel cost per Km

Diesel cost per Km/totalload weight per trip

Rs. 45 / 3.5Km/lit = Rs.12.87 Km

Rs. 12.87/27 MT = Rs.

0.48

0.48

4 Insurance, 0.20


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Maintenance &

Road Tax

5 Other

Expenses

RTO Mamool, Traffic

Police & Supervisorsalary

0.10

6 Loanamount

Loan amount paid permonth/Total Vehicle

movement per monthin Kms

Loan amount per monthper Km/ total weight

per load

Rs.42000/2800

Km = Rs.23.69

Rs. 15/27MT = Rs.

0.64

0.64

Total 1.86

Assumptions made for calculations per KM per MT:

i. Each tyre cost is Rs. 22500

ii. Life expectancy of back tyre is 45000 Km

iii. Life expectancy of front tyre is 25000 Km

iv. Driver Wages is Rs. 700 per Trip & Cleaner charges is Rs. 250 per trip

v. Per litre Diesel Cost Rs. 45

vi. Average mileage of 2516 model with load will be 3.5 Km/ Litre (KPL)

vii. No of loads per month is 28, so total vehicle movement in a month is2800 KM

viii. Expected Loan amount per month on the basis of capital expenditure:Rs.42000/month

Vehicle on road price: Rs. 21 Lacs,

Initial amount invested by borrower: Approx Rs. 5.29 Lacs

Loan Amount given by Rs. 15.73 Lacs

Rate of interest: (for 4 Years)

Total Interest = Rs. 15.73 Lacs *6.18 %* 4 years = Rs. 3.89 Lacs

Loan amount paid per month = (Total Loan + Total Interest) / 47months 19.62 Lacs / 47 months

Rs. 41740 / Month = Aprox Rs. 42000 / Month


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Overall comparison of both 27 MT Vs 38 MT:

Variable Name 21 KL Tanker ( 27

MT)

30 KL Tanker (37 MT)

Avg. Mileage 3 KPL (Km per Ltr) 2.25 KPL

Full load Mileage 3 KPL 2 KPL

Empty Load Mileage 3.75 KPL 2.5 KPL

Costing structure

per Km Per MT

1. Tyre 0.21 0.33

2. Driver bata 0.31 0.42

3. Diesel 0.48 0.54

4. Insurance,

maintenance &

Road Tax

0.20 0.20

5. Other Expenses 0.10 0.10

6. Loan amount Paid

to bank

0.56 0.64

Total 1.86 2.23

Trailer Length 25 Feet 40 Feet

Weigh Bridge

Required

More than 40 MT More than 55 MT

E.I.D Parry (India) Limited Scenario:


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Every day EID Parry (India) ltd will be transferring approximately 250 - 300

MT of molasses to our Sivaganga plant from Pudukottai plant &

Pettavaithalai plant on 60:40 ratio basis. * Calculation provided below

Sivaganga Per day requirement is 60000 Ltr & No. Of days operational days

in a year 300 & conversion factor for Molasses to alcohol will be 4:1 (i.e. 1

MT of molasses will gives 250 Ltr of alcohol).

Molasses Requirement to Sivaganga (MT) =

= Per Day production * No. of days / Conversion factor

= (60000 * 300) / 250

= 72000 MT per annum.

So Sivaganga Plant requires 250 300 MT of molasses required. It has to betaken from Pettavaithalai & Pudukottai plant on 40:60 ratios respectively.

So approximately, we will be transferring 150 MT from Pudukottai & 100 MT

Pettavaithalai plant respectively.

We are currently using 21 KL (27 MT) tanker to transport molasses from

Pudukottai & Pettavaithalai to Sivaganga plant.

No. of trucks required per day:

With these truck capacities, every day we may need 9 10 Tankers totransport molasses. If we are using 30 KL (38 MT) Tanker we may need 6

7 loads per day.


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Conclusion:

Project Viability:

Here is the cost comparison detail for both trucks:

Cost parameters 20 KL (27 MT) 30 KL (38 MT)

Per day Sivaganga

molasses requirement

250 MT 250 MT

Per total No. Of loads

Required

Approx 10 Approx 7

Per Trip Cost per load

(calculation given

below)

Rs. 5022 Rs. 8474

Total Expenditure

per day for

transportation of

molasses

Rs. 50220 Rs. 59318

Weigh bridge Existing Weighbridge

system is enough

New weighbridge has to

be build for the new

tankers

Per trip cost per load = Per Km per MT cost * Vehicle weight *

Destination distance

For 27 MT tanker per trip cost = 1.86 * 27 * 100 = Rs. 5022

For 38 MT tanker per trip cost = 2.23 * 38 * 100 = Rs. 8474

Per day Total expenditure for molasses transfer= Per Trip Cost * No.

Loads required per day

For 27 MT Total expenditure per day = 5022 * 10 = Rs. 50220

For 38 MT total expenditure per day = 8474 * 7 = Rs. 59318

By seeing this cost sheet, we are incurring an additional cost per day is Rs.

9098 by implementing 38 MT tanker without considering Capitalexpenditure and new weigh bridge cost.


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Other factors:

1. Total capital expenditure for 7 trucks will be 217 Lacs (each truck 31

Lacs)

2. We do not have any weigh bridges nearby to weigh these tankers.

These kind of weigh bridges is only available in cement factories.

3. By implementing these trucks we need to go for new weigh bridges,

which will cost around 25 Lacs (as per Mr. Prakash mail). This weigh

bridge has to weigh a minimum of 60 MT & length has to be above 38

40 feet.

4. None of the transporter is having 38 MT tankers and these tankers

will be a customised tankers for E.I.D Parry (India) Limited.

Transporter cannot use these tankers for other industries.

5. So supplier will insist us to take these tankers on monthly rental basis

as against our old system of Per KM per MT cost. Monthly hiring

charges will be more comparing to per KM per MT. And we cannot

even use these tankers for other materials.

Bottom Line:

After considering all these variables, we may understand that 38 MT

tanker project viability is not satisfying our basis need of reducing

transporting cost.


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Reference:

1. Case study on Design Improvement: promoting new generation tank

trucks

2. Road statistics of india, problems & solutions by SB DIKSHIT, State

Quality Monitor, U.P.R.R.D.A

3. http://bharattanks.net/LPG_Product.htm#lpg_truck_type

4. http://3.bp.blogspot.com/-HqYZ7E5DJTA/TbH-

2s0RNSI/AAAAAAAAA5E/aZ0ozcYoW74/s1600/Grain+silo+supply+truc

ks+3.jpg

5. National Disaster Management Guidelines Strengthening of safety

and security for transportation of POL Tankers July 2010

6. http://www.kailashcarriers.com/about_us.html

Attachments Provided:

1. Technical Specification & broacher of U 4023 TT vehicle included

2. Technical specification & Broacher of 2516 Vehicle included.

3. Article on national disaster management guidelines strengthening

safety and security for transportation of POL Tankers.

4. Article on government new initiative on new design tankers.

5. Article on road statistics of India, problems & Solutions.

6. Web page on tanker specifications made by M/s Bharat Tankers and

vessels.
http://toostep.com/shashibhushandikshit_dikshit/profilehttp://toostep.com/shashibhushandikshit_dikshit/profilehttp://bharattanks.net/LPG_Product.htm#lpg_truck_typehttp://3.bp.blogspot.com/-HqYZ7E5DJTA/TbH-2s0RNSI/AAAAAAAAA5E/aZ0ozcYoW74/s1600/Grain+silo+supply+trucks+3.jpghttp://3.bp.blogspot.com/-HqYZ7E5DJTA/TbH-2s0RNSI/AAAAAAAAA5E/aZ0ozcYoW74/s1600/Grain+silo+supply+trucks+3.jpghttp://3.bp.blogspot.com/-HqYZ7E5DJTA/TbH-2s0RNSI/AAAAAAAAA5E/aZ0ozcYoW74/s1600/Grain+silo+supply+trucks+3.jpghttp://www.kailashcarriers.com/about_us.htmlhttp://www.kailashcarriers.com/about_us.htmlhttp://bharattanks.net/LPG_Product.htm#lpg_truck_typehttp://3.bp.blogspot.com/-HqYZ7E5DJTA/TbH-2s0RNSI/AAAAAAAAA5E/aZ0ozcYoW74/s1600/Grain+silo+supply+trucks+3.jpghttp://3.bp.blogspot.com/-HqYZ7E5DJTA/TbH-2s0RNSI/AAAAAAAAA5E/aZ0ozcYoW74/s1600/Grain+silo+supply+trucks+3.jpghttp://3.bp.blogspot.com/-HqYZ7E5DJTA/TbH-2s0RNSI/AAAAAAAAA5E/aZ0ozcYoW74/s1600/Grain+silo+supply+trucks+3.jpghttp://www.kailashcarriers.com/about_us.htmlhttp://toostep.com/shashibhushandikshit_dikshit/profilehttp://toostep.com/shashibhushandikshit_dikshit/profile


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7. Examples of other industry practices in India & abroad.

8. M/s SGM Transportation Provided HDFC loan statements for his new

vehicle loan.

9. Working sheets for 21 KL & 30 KL (39 MT) tankers (Informationprovided by M/s SGM Transportation)

main report - 40 mt tanker

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