Yoma Fleet expands into Myanmar’s logistics industry

Yoma Fleet, a subsidiary of Singapore-listed Yoma Strategic Holdings, has launched a truck and trailer rental service, YomaRentals.Asia, targeting logistics companies during periods of peak demand.

Logistics is an important sector in Myanmar and the government’s National Logistics Master Plan, drawn up by the transport and communications ministry with aid from the Japan International Cooperation Agency, forecasts that cargo movement to and from Myanmar will double to 312 million tonnes by 2030 compared to 169 million tonnes in 2015.

“We see a huge market potential in renting out trucks and trailers. According to the government’s Road and Transport Administration data there are currently 56,000 10/12-wheeler trucks left in the market and there’s only about 15,000 semi-trailers. Most of those rigid trucks are going to go away. No one can afford to replace a 12-wheeler, they are just too expensive,” said Allan Davidson, head of vehicle rental and leasing at Yoma Fleet.

Similar to its car rental service, Yoma Car Share, which was launched in 2018, YomaRentals.Asia also has a website where after registering as a member you’ll be able to reserve, unlock, and drive.

Daily rates for trucks are around K130,000 with a kilometer charge of K78/km. Trailers are charged at K23,000 daily and K124/km.

The predominant land routes for freight are from Myawaddy to Yangon, and Yangon to Mandalay. Around 70 percent of the cargo in Myanmar is moved on the Yangon-Mandalay corridor.

At the same time, most trucks in Myanmar are about ten years old and nearing their expiration dates. As such, the existing fleet in the logistic sector is very uneconomical in terms of fuel usage because the engines are old. Replacing old vehicles is also an issue as new vehicles cost around US$65,000.

This is where YomaRentals.Asia will step in to provide its new trucks and trailers, which not only consume less fuel, making the transport more efficient, but also give more savings to the clients.

“Our service has a huge proven fuel saving. We just had a truck go to Namtu in January and they are going to get about 2.8km/l where most of these 12-wheelers are doing about 1.8 or 2km. So it’s a big difference – bigger load and less fuel. The new Hino or Isuzu trucks are very fuel efficient and there are a lot of savings being made there,” Mr Davidson explained.

The service currently provides Japanese Hino, Chinese Fuso, and Italian Iveco trucks. The fleet is able to move reefer boxes, refrigerated containers, 40-ft to 45ft containers; low-loaders and more.

The firm has also developed “a poor-man’s reefer box” by taking reference from Vietnam, where shipping containers, with the refrigerator unit removed and replaced, have been converted into a diesel-electric refrigeration unit

“We put the carrier vectors [refrigerating unit] in the front, that allows it to work on the road, and when it’s at a warehouse, we can run it with three-phase power,” he explained.

Meanwhile, its trailers have a remote locking system where the brakes will freeze at the push of a button for safety purposes. The trailers cannot be moved until they are reactivated.

For trucks and trailers weight is also critically important, as a lot of the trailers coming out of China are very heavy, Mr Davidson explained.

“The weighing of vehicles in Myanmar is done in a strict manner unlike other countries so there is a lot of savings to be had by ensuring that the lightest equipment comes in. The Hino is only 8 tonnes and the trailers which we’re buying have been put a lot of emphasis on weight. We can do it through high tensile steel, alloy wheels, and air suspension,” he said.

Yoma Fleet is estimated to invest K3 billion in this calendar year into YomaRentals.Asia.

YomaRentals.Asia has rental hubs in Myawaddy, Yangon, Mandalay, and would open one later this year in Muse.

“We want to be in a position to be able to be highly competitive with fellow Greater Mekong Sub-Region countries once trailers can travel borders freely, thereby offering great flexibility to the Myanmar logistics industry,” Mr Davidson said.

Source: Myanmar Times

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