Operating costs differentiation among the haulage companies : in the case of Southern Region

Abstract

Malaysia container haulage was introduced in 1971, the number of player has been increased from time to time. This study is basically to determine the difference of the operating costs among the players in Southern Region, which related to costs element i.e. Fuel, maintenance, salary, tax, staff training and licensing. Since the haulage companies are operated with difference sizes of truck therefore the players have been divided into three categories i.e. Big Operators with > 50 units Prime Mover, Medium Operators with < 50 units Prime Mover and Small Operators with < 20 units Prime Mover. The findings of the research show that there is a difference of operating costs between the three types of haulage operators. Fuel being spending against total annual operating costs for both big and small operators is 30% whilst for medium is 35%, which it shows 5% higher. Maintenance costs for both big and medium operators have a same degree of 30% each whilst small operators incurred 25% which 5% lower compared to the big and medium operators. Salary costs had revealed that big and small operators are spending 25% which 5% higher compared to medium operators. Tax, licensing and training costs are showing 5% for those three players except licensing for small players showing a 5% higher if compared to both big and medium operators. The costs proportion showing that the major operating costs are apparently spending in fuel and maintenance, followed by the salary, licensing, tax and staff training. As to sustain the viability of this s industry, the haulage companies have to consider other alternative of fuel e.g. using NGV or Bio-Diesel, outsourcing the repair maintenance works, review the existing strategy and policy and last but not least using high end technology for integrated planning and tracking systems even though it is costly but in the long term run it will be benefited to them. Ultimately the findings of the study will be guided decisions for estimating the magnitude of each operating cost among the operators.