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Some sectors are downsizing while others are
booming. Patric Cunnane reports on
confiding trends in the Emerald isle.
Like their UK counterparts Irish operators are suffering because of soaring fuel prices, although diesel remains considerably cheaper in Ireland than in Britain. However, in a country that exports more than 75% of its produce, mostly by road, the Irish Road Haulage Association feels more justified than ever in lobbying for a fuel rebate for its members, who it refers to as "essential users".
Earlier this month the IRHA held meetings with IuniorTransport Minister Ivor Callely and Finance Minister Brian Cowan to press its case. "We want this benefit only for taxcompliant, licensed operators," says IRHA president and Roscommon tipperman Vincent Caulfield, "We need some response on this in the short term because it's close to breaking point for a lot of operators," he says Caulfield cites the case of a Donegal operator who has learned that his former competitors have thrown in the towel. "They are now offering him their trucks for sale."
Construction
1 lowever, its not all doom and gloom. Caulfield reports that diesel, which currently retails for 93-95c/litre (about 65p/lit) is due to fall by 2.6c/lit over the next few days. And in his own sector, construction, business is booming. "Construction is at full capacity at the moment, whether it's house building or roads," he says "International work is less profitable and people are pulling out."
This is confirmed by IRHA spokesman and Greenore-based haulier Jim my Quinn. He has stopped running reefers to the Continent to concentrate on domestic and UK work, saying: "There's no French dog will ever cock a leg on one of my vehicles again."
He adds: "We are hearing that operators are halving their fleets. A lot of fridges are parked." Quinn will be at the industry's meetings with the ministers and hopes to impress on them that it's a pan-European problem. "There's got lobe more joined-up thinking across government departments.The railways could not cope with more than a 3% increase in freight. We are not anti-rail. Hauliers would be enthusiastic bookers of space on trains if the systems worked, but the rail just can't cope."
Even in sectors which are booming, the profits are not being passed on to hauliers. "Customers are reluctant to increase their rates," says Caulfield.
While some in the industry are clearly suffering, the figures for truck and trailer sales suggest the Celtic Tiger still has plenty of growl.August truck registrations were up by 50% on the corresponding month last year with total registrations in the first eight months of the year up by more than 26% year on year. Vehicle sales in the construction sector are up by no less than 35% with Hino grabbing the lion's share it accounts for 41 % market share in 8x4 tippers, ahead of Volvo and Scania.
So if hauliers are falling by the wayside who is buying all these new trucks?
Caulfield reckons many units may be replacements for the 54,000 trucks run by Ireland's own-account operators. Other purchases may reflect the desire of many operators to avoid using digital tachographs.
"They are being introduced on 1 January," says Vincent Caulfield. "Anyone buying a new truck after that date will have to use them. Some hauliers are nervous about getting into computerisation so they may be buying now to avoid the legislation."
The boom in construction is reflected in healthy sales at Dennison Trailers. Chief executive Shay O'Connor says the movement is all in the right direction, "We're doing very well with our range of slider trailers which arc suitable for the construction sector."These include slider tippers and block trailers.
With the advent of 40-tonners the concept really took off, O'Connor reports. "They allow the operator to carry maximum capacity and stay legal.They are very popular — we get new orders every week."
Trailer rental specialist TIP Ireland is also busy. "The Irish market is definitely on the up for TIP" says general manager Micheal Murphy-Revenue this year is 16% up on 2004." Customers have renewed their contracts and the introduction of flexible financial leases has enabled operators to take on short-term flexible contracts with new equipment and attractive rates.
The demand has led to a newTIP sub-depot at Dromore. Northern Ireland.
"We are exploring other locations at present," Murphy concludes. •