Category

Logistics

Home / Logistics
Logistics, Startup, Tech

How does the future look for Pakistan’s Trucking Industry?

The development of the logistics and transport infrastructures of a country create the platform for sustainable long-term economic growth and provide the country a competitive advantage globally. Pakistan’s national freight transport is predominantly carried out through the country’s road network; according to a study in 2016, the figure quoted was 96%. The lack of an efficient rail network has skewed most transport towards the trucking sector, which too suffers from old inefficient vehicles and fragmented supply. 

Pakistan’s inland domestic road routes amount to a total distance of 264,000 km which includes national highways, motorways, expressways, and other important strategic roads. While the trucking industry is still seen as a small segment that constitutes the bigger logistics industry as a whole, the role it plays is significant. Hence, efficiencies and optimization in the space can lead to large savings and value creation. 

Bringing in reforms and upgrading the trucking sector with the efficient matching of transporters and corporates will help create significant value across the board. Pakistan’s trucking sector is characterized by small independent operators (with 1-3 vehicles) driven by family members, whilst larger organized fleet operators remain scarce. According to statistics, there are over 300,000 trucks that are currently operating in Pakistan, but most of these are in poor conditions and often face breakdown and maintenance delays.  Despite these barriers and hindrances, Road transport still remains instrumental in transporting goods within the country as it constitutes 1.64 million PKR of Pakistan’s overall GDP. The Government is working on truck financing programs to help these operators upgrade and maintain their vehicles but accessibility is limited. And with CPEC kicking into full gear additional capacity creation is essential in the trucking sector. 

While the trucking sector does face structural and financing challenges, it is clear that it remains integral to the transportation of goods and hence the economy. Large capacity build-up in supply (trucks) is unlikely in the near-term and therefore route optimization, backload efficiency, and digital load matching are important for transparency and execution. Digitization is termed by many as the broad solution in optimizing the trucking sector, and due to this, many startups such as Trukkr, are seeking innovative solutions to serve this basic necessity for both transporters and corporates.

Logistics, Startup, Tech

How are startups affecting the Trucking Industry?

If you have been out on the roads in Pakistan, an encounter with trucks loaded to their brims should be a very common sight for you. Those huge wheeled giants are the carriers to logistics as minute as the button of the shirt you are wearing to huge machinery for a factory. The trucking industry is the backbone of the entire supply chain system, delivering the consignments; be it the raw material from the suppliers or finished goods to customers. In short, the trucking industry is an indispensable element to the entire trade cycle.

Pakistan has been lauded as the hotspot for initiating and financing startups. In the last few years, we have seen several start-ups surging in various industries with the inclusion of technology and innovation being added to the current dynamics of their respective industries. This has introduced our society to the integration of technology with almost everything in our lives around the clock; be it ordering food, hail a cab, or getting groceries at home, all the aforementioned functions in our lives are gradually shifting to the digitized and novel ways.

Being a developing nation, most of Pakistan’s industries are in premature stages of development and efficiency. The trucking industry; also following the pattern, is yet to achieve the potential excellence efficiency levels competing with the global standards as well as the standards of the neighboring developing nations such as India, Bangladesh, and Sri-Lanka.

The plethora of issues at hand for the industry is acting as a bottleneck for the entire production and trade functions which are responsible for exports, imports, and even in-state logistic cycles. Figures of the consequences created due to the aforementioned bottleneck are exponentially very high; be it due to unavailability of freight trucks, inefficient and unintegrated system, or substandard roads.

To counter these issues, the trucking industry is also one of the industries with multiple names emerging on the startup scene from both local and foreign origins. These startups are aimed to untangle the ever so fragmented and unaccounted industry. One such startup is Trukkr, which aims to bring about a revolution in the trucking sector of the country, by digitizing a larger fragment of the scope. Such marriage of technology with operational efficiency and modernized platforms is touted as being the solution for all the stakeholders involved in the logistic cycle; truck owners, drivers, and the shippers who seek solutions to their supply chain needs.

The potential in the industry is inarguably immense with huge numbers being quoted in research, but facts and figures of the impact that the said startups have created to date are still an early call to make. Most of them have entered the industry in the last couple of years and are yet to unleash the total potential, though these are steps in the right direction which will hopefully result in fruit-bearing results for our trucks and their roads ahead.

Recent Comments
    About Exponent

    Exponent is a modern business theme, that lets you build stunning high performance websites using a fully visual interface. Start with any of the demos below or build one on your own.

    Get Started
    Instagram

    [instagram-feed]

    Privacy Settings
    We use cookies to enhance your experience while using our website. If you are using our Services via a browser you can restrict, block or remove cookies through your web browser settings. We also use content and scripts from third parties that may use tracking technologies. You can selectively provide your consent below to allow such third party embeds. For complete information about the cookies we use, data we collect and how we process them, please check our Privacy Policy
    Youtube
    Consent to display content from Youtube
    Vimeo
    Consent to display content from Vimeo
    Google Maps
    Consent to display content from Google
    Spotify
    Consent to display content from Spotify
    Sound Cloud
    Consent to display content from Sound