TRANSPORT and ROAD RESEARCH LABORATORY

Department of the Environment Department of Transport

TRRL LABORATORY REPORT 1007

THE ROLE OF THE AGRICULTURAL TRACTOR IN ROAD HAULAGE IN SRI LANKA

by

A J Plumbe and, H M Byrne

The work described in this Report forms part of the programme carried out for the Overseas Development Administration, but any

views expressed are not necessarily those of the Administration

Overseas Unit Transport and Road Research Laboratory

Crowthorne, Berkshire 1981

ISSN 0305-1293

CONTENTS

Abstract

1. Introduction

2. Factors promoting the use of tractors for haulage

2.1 Government policy

2.2 Tractor population

2.3 Distribution

2.4 Fleet age structure

2.5 Utilisation

3. Costs and returns in tractor operations

4. Summary

5. Acknowledgements

6. References

7. Appendix: Numbers of tractors imported

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© CROWN COPYRIGHT 1981 Extracts from the text may be reproduced, except for

commercial purposes, provided the source is acknowledged

Ownership of the Transport Research Laboratory was transferred from the Department of Transport to a subsidiary of the Transport Research Foundation on I st April 1996.

This report has been reproduced by permission of the Controller of HMSO. The work described in this report forms part of a programme carried out for the Overseas Development Administration, but the views are not necessarily those of the Administration. Extracts from the text may be reproduced, except for commercial purposes, provided the source is acknowledged.

THE ROLE OF THE AGRICULTURAL TRACTOR IN ROAD HAULAGE IN SRI LANKA

ABSTRACT

The agricultural tractor fills an important role in the freight haulage sector of the Sri Lankan economy. While some machines have been acquired by operators to use exclusively for this purpose, others are employed in this role only when not needed for soil cultivation. The report describes the geographical distribution of ownership, the scale of employment of tractors in this role and shows that before November 1977 road haulage was a profitable business for the owners of machines. After this date when the import of duty was substantially increased the report explains that the position was changed with owners of new machines being unlikely to cover their capital and running costs from revenue.

1. INTRODUCTION

The survey of freight movement in Sri Lanka undertaken in 1977-78 clearly indicated the important

contribution that both four-wheeled and two-wheeled tractors make to road haulage on the island. These

vehicles with their accompanying trailers satisfy a demand for short haul goods movements typically over

distances of less than ten miles, which would in their absence be met by the lorry or the bullock cart.

They operate throughout the island carrying a wide variety of goods, in state corporations, estates and

plantations, in both urban and rural areas. The capital savings made possible to the economy at large

through the employment of these vehicles in both road haulage and agriculture, together with the large

volume of goods carried, makes this sector of the haulage industry worthy of study.

This report assesses some of the data collected from roadside (rural) and crossroads (peri-urban)

surveys, together with information published by others, and comments on the haulage role of tractors

in Sri Lanka. Within this, estimates are made of the likely magnitude of receipts and expenditures arising

from these operations.

2. FACTORS PROMOTING THE USE OF TRACTORS FOR HAULAGE

2.1 Government policy

Tractors were imported initially as part of a package of measures directed toward increasing

agricultural production, especially in the drier areas to the east and north of the island. Though this policy

was implemented successfully the introduction of the tractors led to the extension of their use to road

haulage. As a part of this stimulus to agriculture, foreign exchange was made available at the most favour-

able of the controlled exchange rates for tractor purchase in the fifties; this, together with tax concessions

on interest charges and exemption from fuel taxes, made tractor purchase a profitable investment. Owners

soon realised that profits could be enhanced even further where tractors could be used for haulage for

the seven months of the year when they were not needed for their primary function.

In the late fifties, 20 per cent of all tractor imports were allocated to State Corporations for haulage,

particularly around Colombo. At the same time the use of tractors with trailers on the estates and

plantations was actively encouraged by exempting only these machines from paying fuel tax. These changes

in policy led to an uneven rate of growth of the tractor haulage industry. The sixties, by contrast with

the fifties, was a period of economic difficulty in Sri Lanka. The principle and most important manifestation

of this was the balance of payments problem which led, inevitably, in 1962 to the control of access to and

the use of foreign exchange. This resulted in an almost complete embargo on the imports of new lorries,

and their spare parts, and further limitations of the imports of tractors and their spares. These restrictions

made the maintenance of lorry fleets difficult and expensive. As might be expected this became reflected

in their tariffs and in consequence led to a switching of traffic to cheaper modes, particularly for short haul

business near to or within urban areas. This movement was further encouraged between 1961-65 when

60 per cent of all imported tractors were diverted to government haulage to make up the growing deficit

in national haulage requirements. In 1968 limitations on imports were lifted to be replaced by the Foreign

Exchange Entitlement Certificate Scheme (FEECS) and the Open General Licence (OGL). Under these,

both lorries and tractors could be imported, together with their spare parts, but the high foreign exchange

premium to be paid gave a considerable price advantage to tractors and promoted still further their use

in road haulage.

In 1968 there was a switch in government policy favouring two-wheeled tractors rather than four as a

part of a policy to reduce the monopoly that was felt to exist in tractor ownership by richer four-wheeled

tractor owners, particularly in the rural areas. Large numbers of two-wheeled tractors began to enter the

country, aided by the halving of their FEECS premium requirement in 1970. By the early 70s official

opinion was turning against the use of tractors for haulage, despite the fact that since 1968 fifty per cent

of all tractor imports had been diverted to State Corporations for haulage on development programmes,

and the 1972 Agricultural Productivity Law was framed in the belief that tractors were being 'inefficiently

used'. Under this law government agents were empowered to requisition tractors not being used for tillage

during the cultivation seasons. This measure was largely ineffective and, despite the increase in the FEECS

premium on tractor parts and some relaxation in the shortage of new lorries and their spare parts in 1977,

the use of tractors for haulage has continued and grown.

2.2 Tractor population

Four-wheeled tractors have been imported from 1950 and two-wheeled tractors (commonly referred

to as power-tillers) from 1956. Total numbers imported are difficult to estimate as the records of different

authorities do not reconcile. The best estimates are that around 16,000 four-wheeled tractors were imported

between 1950 and 1976 and nearly 11,000 two-wheeled tractors between 1956 and 1975. A breakdown

by manufacturer is given in the Appendix. These figures do not of course refer to the current operational

fleet. The Sri Lankan State Transport (Tractors) Corporation estimated in 1977 that the national fleet

stood at about 10,500 four-wheeled tractors and 8,000 two-wheeled, basing their estimates on licensing

returns. This could be an overestimate as some owners might have registered inoperable vehicles to improve

their allocation of spare parts.

In order to economise on the stock holding cost of spares and maintenance costs it has been government

policy throughout the 70s to restrict the number of types of tractors imported. The most common four-

wheeled tractor presently found is the Massey Ferguson 135 but there are three popular makes of two-wheeled

tractors commonly found, namely Iseki, Kubota and Satoh. The supply of spares for vehicles of all types

has long been a problem and it is hoped that the restricted number of types will also encourage the product-

ion of locally made and adapted replacements. 2

2.3 Distribution

The distribution of four and two-wheeled tractors across the island is not uniform. There are clear

regional preferences and the plots in Figure 1, taken from Table 1, have been labelled to indicate this.

It can be seen that the dry north and eastern parts of the island have greater numbers of four-wheeled

tractors than two, while the wet south-western and hill areas generally have more two-wheeled tractors

than four. The districts of the intermediate zone have no marked preference for either, having roughly

equal quantities of each.

TABLE 1

Estimated distribution of tractors by climatic zone in 1977

Zone District Four-wheeled tractors Two-wheeled tractors Total

Wet

Wet

Wet (hill)

Wet (hill)

Wet

Wet

Wet (hill)

Wet

Dry

Dry

Dry

Dry

Dry

Dry

Dry

Dry

Dry

Dry

Intermediate

Intermediate

Intermediate

Intermediate

Colombo

Kalutara

Kandy

Nuwara Eliya

Galle

Matara

Ratnapura

KegaUe

Hambantota

Jaffna

Mannar

Vavuniya

Batticaloa

Amparai

Trincomalee

Puttalam

Afluradhapura

Polonnuruwa

Badulla

Moneragala

Kurunegala

Matale

715

95

175

208

182

268

242

118

588

1040

470

490

907

985

395

86O

837

385

283

222

916

100

8OO

70

330

100

220

620

450

5O

1080

190

3

16

5

200

120

340

900

900

450

90

1000

100

1515

165

5O5

308

402

888

692

168

1668

1230

473

506

912

1185

515

1200

1737

1285

733

312

1916

200

Source: Sri Lanka State Trading (Tractor) Corporation

The type of tractor favoured is influenced primarily by the suitability of the machine for tillage

rather than for haulage purposes. Four-wheeled tractors are found to be necessary for the pre-rains tillage

in the dry zone and can be operated efficiently on the larger plots of flat land. Two-wheeled tractors are

more suited to soils softened by rain, and can be manoeuvred easily on small plots with steep gradients.

Four-wheeled tractors in the wet zone are commonly used exclusively for haulage, particularly in urban

areas and on the plantation estates in the hill districts, where the roads are o f poor quality.

Carr 1 found that tractors were far more likely to have been purchased for haulage in the wet zone

(which includes the hill districts) and intermediate zones than in the dry. This may be because in these 3

areas there is a concentration of entrepreneurs who have no connection with agriculture and therefore look

to making a return exclusively from road haulage.

2.4 Fleet age structure

The roadside survey indicated that most owners possessed a single tractor and trailer. Tables 2 and 3

indicate this and confirm that most machines are used at some time for haulage, though the units are not

necessarily all for hire. The small size of the average business poses a potentially serious social and

economic problem.

TABLE 2

Frequency distribution of tractor ownership, 1977

Number of tractors Number of owners

Source:

1 2 3 4 5

175 33

4 4 2

Crossroads and Roadside surveys

TABLE 3

Frequency distribution of trailer ownership, 1977

Number of trailers Number of owners

Source:

1 2 3 4 5

171 15 4 1 2

Crossroads and Roadside surveys

Unless provision has been made for replacement small operators may in the near future be unable to

afford a new or second-hand machine and may therefore be forced to leave the industry. Farmers or hauliers

with machines of different vintages are unlikely to face the problem to the same extent. For these operators

the capital costs of new machines may be met at least in part from income earned from their other activities,

and any loans raised are likely to be at lower rates of interest than those available to operators of a single

machine. Nevertheless it cannot be assumed that the larger operators will increase their fleet to make good

the loss of capacity should the smaller operators leave the industry. Essentially and again, this is because

of the rising cost of machines.

Anecdotal evidence collected in the survey suggested that only the older machines bought second-hand

from farmers tended to be used in road haulage but the evidence collected and summarised in Tables 4 and 5

does not support this view. New machines both two and four-wheeled were encountered in the survey in

addition to the older machines expected. It may well be though that operators in future will have to replace

their worn out machines with a higher proportion of brand new ones as the number of second-hand machines

for sale ex-farm may decline. 4

TABLE 4

Frequency distribution of ages of four-wheeled tractors employed on road haulage, Crossroads and Roadside surveys, 1977

Age of tractor

6 7 8 9

10 11 12 13 14 15 16 17 18 19 20+

Crossroads survey

13

22 3

14 21 21 18 10 4

11 11 11 12 3 4 3 1

i

Roadside survey , Total

17 30 8 8 7 7 2 2

- 22 14 17

5 19 23 44 33 54 39 57 37 47 31 35 10 21 5 16 9 20 7 19

11 14 7 I t 2 5 5 6

272 454 Total 182 [

TABLE 5

Frequency distribution of ages of two-wheeled tractors employed on road haulage, Crossroads and Roadside surveys

Age of tractor Crossroads survey Roadside survey

1

2 3 4 5 6 7 8 9

10 11 12

14 3 3

5

7 4

1

1

1

2 1

In Figure 2 the data quoted in Table 4 is reproduced graphically. From this it can be seen that the

age distribution observed in 1977 was markedly peaked reflecting the fluctuations in policy discussed in

Section 2.1. The average working life of a tractor in Sri Lanka is about 12 years and it can be seen that

in 1977 many of the machines encountered in the survey were approaching their expected retirement

age. I f the service provided by the sector is to be maintained the loss of machines must be made good.

Since the supply of the more recent vintages of second-hand machines is low, as can be seen from the graph,

replacements must be made for the greater part with new machines. Further the second-hand machines

that are available may well be relatively more expensive than those of a similar age in the past.

In the budget of 1977 substantial increases in duty were levied on both two and four-wheeled machines.

The depressing effect of these measures on the profitability of tractor road haulage is assessed in some

detail in Section 3 but the knock-on effect of these measures on to the price of second-hand machines may

alone be sufficient to cause some operators to leave the sector. The extent of the effect cannot be assessed

apriorihere. It may be possible for operators to compensate for these higher capital costs through increasing

tariff rates but the extent to which this may be possible will depend upon the strength of forces w,hich

have not been assessed in this study.

2.5 Utilisation

The crossroads survey in the present study found that 35 per cent of the tractors sampled were engaged

in haulage. Although conducted at three sites and though the sample size varied widely (18, 123 and 79)

the proportions found in each survey were not significantly different (at the 10 per cent confidence level).

This is similar to the estimate made by Carr 1 who found that 40 per cent of all tractors were being used

to some extent in haulage. The crossroads survey estimate must however be regarded as supporting Carr's

estimate rather than conclusive evidence in itself as the sample taken may not be representative of the

island as a whole.

Carr provides an interesting breakdown of tractor activities, both for own account use and for hire in

the dry and intermediate zones (Tables 6 and 7). Cart's data shows that only a small proportion of tractors

are engaged exclusively in haulage in these zones and further that only in the intermediate zone are two-

wheeled machines specifically designated to this use; and then only for private purposes. On the basis o f

Carr's data it would appear that a greater proportion of four-wheeled machines than two are being used for

haulage.

TABLE 6

Percentage use of tractors for own account activities, 1972

Activity

Haulage only Agriculture only Haulage and agriculture Out of order all year

Dry Zone

four-wheel

3 44 46

7

two-wheel

0 60 36

4

Intermediate Zone

four.wheel

19 38 43

0

two.wheel

33 55 12 0

Source: after Carr (1975)

6

TABLE 7

Percentage use of tractor for custom in Sri Lanka, 1972

Haulage only Agriculture only Haulage and agriculture

Dry Zone

four-wheel

9 52 40

two-wheel

0 83 17

Intermediate Zone

four-wheel

19 61 20

two-wheel

0 100

0

Source: after Carr (1975)

Both two and four-wheel tractors have overlapping roles within the short distance market, and carry

very similar types of loads (Table 8). Such differences as do exist (eg the carriage of construction materials

and passengers) are for the most part determined by each vehicle's capacity to carry the 'normal load' for

the commodity. Average carrying capacity for four-wheel tractors and trailer units is 2.5-3.5 tonnes, and

for two-wheel tractor-trailers 0.5-1.0 tonnes. Construction materials movements usually occur in urban

areas and being bulky are more likely to be carried on the larger machines. Passenger movement by tractor

is more common in rural areas where the choice of local travel mode is more restricted than in the towns.

TABLE 8

Percentage of trips carrying a specified commodity

Commodity Four-wheel tractor Two-wheel tractor

Construction materials Paddy Coconut and coconut fibre Passengers Other Empty

26 8 6

6 54

100

5 13

8 33 41

100

Source: Roadside and Crossroads surveys

The high proportion of 'other' goods carried by two-wheeled tractors relative to the other categories,

hides the greater involvement of these machines in local produce distribution and the high frequency of

mixed loading.

These patterns of carriage however vary between seasons and districts so that conclusions on the

suitability of the vehicles for the work they undertake cannot readily be drawn. However, casual observation

suggests that two-wheel tractors, because of their operators' willingness to carry mixed loads might spend

more of their time all the year round on the road running loade d than do the four-wheel machines.

The average trip lengths made by both four and two-wheel tractors are close, four-wheel machines

averaging 5.9 miles and two-wheel tractors 6.6 miles, but as Table 9 shows some commodities are hauled

over longer distances than others. The first three commodities are generally carried for the construction

industry and this accounts for the similarity in haul lengths. Paddy,coconuts and fibre haulage are

more commonly rural activities and this explains the longer haulage distances for these goods. The

remaining commodities were observed too infrequently to support any generalised comment. 7

TABLE 9

Average trip length for tractor haulage, miles, 1977

Commodity Four-wheel tractor Two-wheel tractor

Bricks and tries Construction materials Timber Paddy Coconuts Fibre Mixed loads Other Empty

4.1 3.4 3.9 7.6 4.1 9.9 7.7

10.2 5.8

n

m

m

m

9.3

6.5 5.7

Source: Roadside and Crossroads surveys

Speed is not an important consideration in the movement of goods by tractors, most journeys being

completed within one hour. Average speeds recorded by both two and four-wheel tractors are surprisingly

the same, around 6.5 miles per hour whether loaded or empty.

Data collected were not robust enough to permit an examination of the factors affecting the choice

of alternative modes of transport, that is between four and two-wheel tractors and bullock carts over

short distances and lorries over the longer. Choice between modes, where it exists however probably

rests upon the size of the load and the tariff rate, having regard to the capacity of the trailer. Cost,

discussed below, is however only one of the potentially relevant factors affecting choice, but undoubtedly

in some areas there may be no option but to accept the mode available,as the total haulage market may not

be large enough to support competition. This question might claim attention in further research work,

having as much relevance for road building policy as for goods distribution.

3. COSTS AND RETURNS IN TRACTOR OPERATIONS

The costs of acquisition of a tractor and trailer in Sri Lanka probably vary over time and between users as

much as anywhere in the world. For those receiving machines under aid agreements they have been free,

but for those buying the price has changed markedly. In part this fluctuation in price reflects fluctuations

in import duty and the variable exchange rate of the rupee. It is also in part due to the wide differences

in interest rate charged on loans. While the rates asked by banks were much the same early in 1977, about

15 per cent, rates from money lenders could be as high as 100 per cent. However, from the number of

units operating on the island in 1977, haulage must then be assumed to have been a profitable business

activity. This is because, as already mentioned, one half of the machines encountered in the survey were

employed exclusively for road haulage. While the other half could have been owned by farmers who,

though making an overall loss on the business, were at least offsetting variable costs, the evidence below is

that the haulage operations were profitable in 1977 without receipts from other activities.

The costs quoted below to support this view incorporate three fundamental assumptions concerning

fixed cost charges:

0)

8

the machines employed in haulage are taken to be purchased new and not supplied under an aid

agreement,

(ii) the interest on the loan is to be thought of not as a payment for the use of money but as an

opportunity cost to be borne for as long as the machines are owned, and

(iii) that the calculations are gross of tax.

The whole framework of the first set of calculations is that proposed by Pillainayagam 2 based on his

assessment of charges for operating agricultural tractors. Assessments are given for two months in 1977,

October and December, in order to show the effect of increases in price arising from the duty and interest

rate changes following the budget of that year. All costs in Tables 10 and 11 are expressed in rupees per

hour. The more familiar breakdown into fixed and variable costs is discussed afterwards.

TABLE 10

Approximate costs of operating four-wheel tractors in road haulage(1) (Rupees/hour)

Cost Head Pillainayagam October 1977 December 1977 cost function

Depreciation (2)

Interest (2) October

Housing

Management

Insurance

December

Repairs, spares and maintenance

Smooth road fuel consumption (F)

Oil and lubricants

Wages (including batta)

0.9P(3)

T

1 x 0.15P (3)

2t

1 x 0.20P (3)

2t

0.025P(3)

t

O.03P(3)

t

O.OOSP(3)

t

2.15 x 10"4p x 0.6 (4) (3)

0.74 gals/hour Rs 5.35/gal

0.3F

Rs 12.5/eight hours

7.48

7.49

2.49

2.99

0.50

10.30

3.96

1.19

1.56

37.96

9.47

12.63

3.16

3.79

0.63

13.04

3.96

1.19

1.56

49.43

Notes: (1) Excludes costs of trailer which are small relative to the tractor. (2) These equations are the more common linear formulations of the capital cost components

and are not those recommended by Pillainayagam. (3) P = price of new tractor, Rs 79,825 in October, Rs 101,050 in December

t = working hours per year assumed here to be 800 T = working life of 12 years expressed in hours = 9600.

(4) Costs assessed from enquiries to be 60 per cent of agricultural expenditure on this item 9

The linking of some of these items with the purchase price might be questioned when the relative

prices of components may well have changed since the date when the equations were estimated. Nevertheless

the order of magnitude of the components and the totals are probably sufficiently accurate to provide a

guide as to the profitability of tractor operations.

TABLE 11

Approximate cost of operating two-wheel tractors in road haulage (1) (Rupees/hour)

Depreciation (2)

Cost Head Pillainayagam October 1977 December 1977 cost function

2.72

Interest (2) October

Housing

December

Repairs, spares and maintenance

Fuel consumption (F)

Oils and lubricants

Wages (including batta)

0.9P(3)

T

1 x 0.15P (3)

2t

i x 0.20P (3)

2t

o.o25P(3) t

2.8 x 10 -4 P x 0.6 (4) (3)

0.26 x Rs 5.35 gal

0.3F

Rs 12.5/eight hours

1.36

0.45

1.83

1.39

0.42

1.56

9.73

5.28

3.52

0.88

3.55

1.39

0.42

1.56

16.60

Notes: (1) Excludes costs of trailer which are small relative to the tractor. (2) These equations are the more common formulations of the cost components and

are not those recommended by Pillainayagam. (3) P = price of new tractor Rs 10,875 in October and Rs 21,100 in December

t = working hours per year assumed here to be 600 hours T = working life of 6 years expressed in hours = 3600.

(4) Costs assessed from enquiries to be 60 per cent of agricultural expenditure on this item.

The tariffs for haulage by four-wheel tractor vary between district, seasons of the year and the load

to be carried. In the hill country where tractors are scarce and in short supply daily rates are high and

during the enquiries were between Rs 250 and Rs 350 per day. Around Colombo and in the coconut

triangle the rates were much lower at Rs 125 to Rs 200 per day. Within this broad band, the precise

calculations of profitability are of limited general interest. A more intuitively appealing presentation of

profitability may be obtained from plotting the fixed and variable costs on a break-even chart to determine

the number of days of work an owner must obtain to cover his costs and the number of days work which

would cover costs at some specified tariff rates; again working a full eight hour day. The Pillainayagam

formulation above however is not well suited to this type of analysis. Instead costs have been classified as

10

fixed or variable according to whether the owner will be required to meet expenses only to the extent

that the machines are used, or whether they must be met irrespectively. Depreciation and interest charges

have been 'annualised' for this purpose. That is, an annual sum has been calculated which will recover

over the expected lifetime of the machine both the capital cost and interest payments at the rate specified.

To this have been added other 'annual' costs which will not vary: housing, management and insurance.

Finally, the variable costs have been added (maintenance, fuel and wages) all expressed as a rate in Rs per

day.

TABLE 12

Four-wheel tractor costs

Fixed costs in rupees/year Annual capital charge

October Rs 79,825 @ 15% for 12 years December Rs 101,050 @ 20% for 12 years

Housing Management Insurance

Total final costs Rs/year

Variable costs rupees/day Repairs, spares and maintenance Fuel consumption Oil Wages

Total variable costs Rs/day

October 1977

14726

1996 2395

399

19516

82.4 31.7

9.5 12.5

136.1

December 1977

22763

2526 3032

505

28826

104.3 31.7

9.5 12.5

158.0

TABLE 13

Two-wheel tractor costs

Fixed costs in rupees/year Annual capital charge

October Rs 10,875 @ 20% for 6 years December Rs 21,100 @ 20% for 6 years

Housing

Total fixed costs Rs/year

Variable costs in rupees/day Repairs, spares and maintenance Fuel consumption Oil and lubricants Wages (including batta)

Total variable costs per day

Octoberl977

2874

272

3146

14.6 11.1 3.3

12.5

41.5

December 1977

6345

527

6872

28.4 11.1 3.3

12.5

55.3

11

The above costs together with revenue assumptions have been plotted on break-even charts

(Figures 3 and 4) to show how profitability expectations might have appeared to a haulage contractor

before and after the budget of 1977. From this presentation it can be seen that while the haulage

business with a four-wheel tractor would have been profitable before the budget, afterwards new vehicles

employed even at the Rs 350/day tariff might not pay their way. This tariff rate used in Figure 3 was the

highest encountered and the 'break-even' position is achieved with 150 full days of employment in haulage.

This much work could be difficult to find for some operators even without allowing for breakdown time.

The hire rate postulated in the calculation is recognised as not being excessively high as a driver working

five days a week on haulage throughout the year would only just cover his costs by charging Rs 275/day.

Two-wheel tractors, though affected proportionately more, were before the budget breaking even with

only about 35 full days work a year. After the budget this increased to nearly 100 full time days or

sixteen hours a week; a much more reasonable expectation. Further the tariff rate of Rs 125/day used

in this calculation was the lowest encountered.

4. SUMMARY

Tractors and trailers fulfil a demand in the haulage market for the transportation of loads weighing around

three tons over distances of about six miles. Some owners offer four-wheeled machines for hire for this

purpose when they are not required for soil cultivation, though many entrepreneurs in the past have

recognised the business as being so profitable that machines have been purchased for exclusive use in road

haulage. This position may have changed following the budget of November 1977 in which the import

duty on tractors was increased to such an extent that new four-wheel machines might not pay their way

in the long run at current (1977) tariff rates. These rates may be expected to increase still further unless

the aggregate stock of tractors is maintained. This will call for some direct measures to be taken as most

operators own only one machine and may well be unable to afford a replacement at current market prices.

5. ACKNOWLEDGEMENTS

The work described in this report was carried out in the Overseas Unit of TRRL (Unit Head:

Mr J N Bulman).

This study of road haulage by tractors was part of a broader study of goods movements by road

conducted jointly by the Sri Lankan Department of Highways, the Sri l_znkan Centre for Transportation

Research and the TRRL Overseas Unit. The authors are indebted to their Sri Lankan colleagues and

would like to express their gratitude to the numerous tractor drivers and owners who co-operated freely

in the surveys.

6. REFERENCES

. CARR, M. Patterns of tractorisation in the major rice growing areas O f Sri Lanka. D Phil thesis.

1975 (University o f Sussex).

. PILLAINAYAGAM, G. Cost estimation of tractor use on agricultural operations. Working Paper,

Farm Machinery Research Centre Maha IlluppaUoma, 1972 (Unpublished).

12

D = Dry

W = Wet

I = In te rmed ia te

1000

800

O

D

600

2

E 400 Z

200

D

D

- D

B

! _ W

I

0

D

D

D

W W

!

W W

W

D

I I I I I I I I

200 400 600 8 0 0

Numbers of two wheeled t ractors

D

I

I

1000

D

Fig.1 Dist r ibut ion of four and two wheeled tractors by cl imatic zones

60

50

40

O

"6 30

E z

20

10

0 0 1

I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20+

Age of tractors (years)

Fig.2 Frequency d is t r ibu t ion o f t ractor ages encountered in survey

60 11

o T--

×

t~

n -

50

40

30

20

10

I I

I

Fixed costs Dec 1977

Fixed costs Oct 1977

F i g . 3

V I I I t I I If I I 0 25 50 75 100 125 150 175 200 225

Number of full eight hour working days

Four wheel t ractor break even chart showing number o f ful l eight hour work ing days necessary to cover operating expenses

30

% X

0~ t~ - I

n -

F i g . 4

25

20

15

10

0

Fixed costs December 1977

Fixed costs October 1977

! I L ~ , ~ l , ,, , , I I I 0 25 50 75 100 125 150 175 200 225

Number of full eight hour working days

Two wheel t ractor break even chart showing number o f ful l eight hour work ing days necessary to cover operating expenses

7. APPENDIX

NUMBERS OF TRACTORS IMPORTED

Numbers of four-wheeled tractors imported by manufacturers, 1950-76

Manufacturer 1950-60 I 1961-70 1971-76 Total

Massey Ferguson

Ford

International Harvester

2200 7950

2184

821

1106

David Brown

BMC

Byclarus

Ferguson

Other*

M

800

501

147

50

181

103

11256

2184

821

501

147

181

103

850

Total 3000 11653 1394 16047

* less than 100 units supplied by a single manufacturer Source: Manufacturers, agents, import records and Sri Lanka State Trading (Tractors) Corporation

Numbers of two-wheeled tractors imported by manufacturers, 1956-75

Manufacturer 1956-70 1971-75 Total

Hinamoto

Honda

Iseki

Komatsu

Kubota

Landmaster

Mitsubishi

Satoh

Shibawa

Other

168

279

665

1260

314

1806

1106

390

357

9

1611

2150

702

168

279

2279

1260

2464

1806

1106

1092

357

21 12

Total 6354 4475 10829

Source: Report of the technical panel on tractors, 1976 Sri Lanka State Trading (Tractor) Corporation

16

(1920) Dd8041301 1,200 10/81 HPLtdSo'ton G1915 PRINTED IN ENGLAND

ABSTRACT

The role of the agricultural tractor in road haulage in Sri Lanka: A J PLUMBE and H M BYRNE: Department of the Environment Department of Transport, TRRL Laboratory Report 1007: Crowthorne, 1981 (Transport and Road Research Laboratory). The agricultural tractor fills an important role in the freight haulage sector of the Sri Lankan economy. While some machines have been acquired by operators to use exclusively for this purpose, others are employed in this role only when not needed for soil cultivation. The report describes the geographical distribution of ownership, the scale of employment of tractors in this role and shows that before November 1977 road haulage was a profitable business for the owners of machines. After this date when the import of duty was substantially increased the report explains that the position was changed with owners of new machines being unlikely to cover their capital and running costs from revenue.

ISSN 0305-1293

ABSTRACT

The role of the agricultural tractor in road haulage in Sri Lanka: A J PLUMBE and H M BYRNE: Department of the Environment Department of Transport, TRRL Laboratory Report 1007: Crowthorne, 1981 (Transport and Road Research Laboratory). The agricultural tractor fills an important role in the freight haulage sector of the Sri Lankan economy. While some machines have been acquired by operators to use exclusively for this purpose, others are employed in this role only when not needed for soil cultivation. The report describes the geographical distribution of ownership, the scale of employment of tractors in this role and shows that before November 1977 road haulage was a profitable business for the owners of machines. After this date when the import of duty was substantially increased the report explains that the position was changed with owners of new machines being unlikely to cover their capital and running costs from revenue.

ISSN 0305-1293