Truck West January 2017

Nikola One: Nikola Motor Company unveils its groundbreaking zero emissions truck in Salt Lake.

Page 17

New West: Manitoba joins the New West Partnership Trade Agreement and the MTA is eager to get working.

Page 14

Page 13

Western Canada’s Trucking Newspaper Since 1989

January 2017 Volume 36, Issue 13

Warm hearts: Despite sub-zero temperatures, Albertans donate to 18 Wheels of Christmas.

truckwest.ca

RETAIL A DV E R T I SIN G PAGES 23 -3

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Looking forward to 2017 Trucking industry remains ‘cautiously optimistic’ about coming year Alberta Transportation, along with the Alberta Motor Transport Association (AMTA), Rosenau Transport and Westcan Bulk Transport, have been conducting a wide-base single tire pilot project in an effort to determine the benefits and negative to using super singles over the more traditional dual tire configuration. Photo courtesy Westcan Bulk Transport

Hey, Alberta: What are you waiting for?

Reach us at our Western Canada news bureau

Pilot project underway, but use of super singles remains limited

Contact Derek Clouthier Derek@ Newcom.ca or call 403-969-1506

PM40063170

By Derek Clouthier

pg 01, 08, 09, 12 tw Jan v3.indd 1

EDMONTON, Alta. – If there was an incessant issue in Alberta that stirs Ken Rosenau’s emotions more than most, it would be safe to say that the legislation of wide-base single tires would be near the top of the list. “Quebec, Ontario and Manitoba have all legislated it,” Rosenau said. “With all the data and studies already in place, why is it taking so long?” Alberta Transportation, along with the Alberta Motor Transport Association (AMTA), is currently conducting a pilot project to determine if widebase single tires would be a viable alternative to the traditional dual tire in an effort to save fuel and help the Government of Alberta make future decisions on the new generation tire. Initially, Westcan Bulk Transport was the lone company conducting the testing, making runs between Edmonton and Calgary from July 1 to Aug. 31 carrying the maximum allowable axle loads as permitted on a two-tire configuration. Westcan

Careers: 18-19, 20

made 98 trips per week (14 per day) on this same run, which the government said would limit the number of variables to measure, making the data easy to decipher. But as Rosenau, president of Rosenau Transport, explained to Truck West, his company is also testing the wide-base single tire and will end Phase 2 of the project at the end of January. Since September, Rosenau Transport has been doing the same run between Edmonton and Calgary with full weights on the super singles, but also on Highway 63 to Fort McMurray and Highway 43 to Grande Prairie. The next phase, which Rosenau said would not happen for some time, would be either getting legislation on the wide-base single tire or move to a permit system to allow full weights on all primary highways in Alberta. “The government is still looking at road damage and its infrastructure, such as bridges, before anything happens,” Rosenau said. “We are running Continued on page 12

To view list of advertisers see pg. 37

Stories by Derek Clouthier CALGARY, Alta. – “I’ll start off by saying that we’re in the trucking business, and as such, we’re eternally optimistic, because you have to be,” Trevor Fridfinnson, COO of Bison Transport, told Truck West with unabashed confidence. If there was mantra the trucking industry could call its own when it comes to predicting how any coming year will go, this would be it – optimism…or better described as ‘cautiously optimistic.’ But there is an underlying level of ambiguity in many parts of Western Canada. Susan Ewart, executive director for the Saskatchewan Trucking Association (STA), said the association’s outlook for 2017 is not an optimistic one. She attributed her pessimism to what she said was the current state of the provincial economy, with an $803 million deficit. “Small carriers are impacted by economic changes,” Ewart said, “and I believe we will continue to see a contraction in the industry with more amalgamations and or acquisitions.” Ewart, who took over as executive director for the STA in April 2016, said there are negative economic factors from the province’s resource sector, and with nothing moving, companies are not transporting goods. “It is a concern because if the industry continues to shrink we (will) see higher unemployment and more companies either selling or shutting down,” Ewart said. But not all is doom and gloom in Western Canada; some are seeing the glass being half full…even in Alberta, where the glass has seemed to be empty for some time. “Early indicators lead us to believe that there will be positive growth in the trucking sector in 2017,” said Alberta Motor Transport Association Continued on page 8 and 9

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4

INSIDE THE NUMBERS

READY FOR RENEWAL

Western Canada’s carriers preparing to renew their fleet in 2017

With the Western Canada economy looking to improve in 2017 and freight volumes forecasted to grow, motor carriers from Manitoba to British Columbia are looking more serious about renewing their fleets than th y have been in recent Current trade-in cycle years. Our annual Equipment Buying Trends Survey shows only 29% of carriers for heavy duty vehicles surveyed had no plans for replacements next year while more than a third (35%) expect to renew at least 10% of their fleet 2-3 years 7%

Percentage of fleet expect to replace by end of 2017

Percentage of fleet expect to replace by end of 2016

10 years or more

41%

4-5 years

of respondents

26% 30% of flee or more 20% of flee

No replacements

19%

7%

6-7 years

21%

55%

10%

of respondents

16% 35%

10% of flee

20% of flee

28%

8-9 years

30% of flee or more

29%

of respondents

10% of flee

Main brand of heavy duty vehicle currently in fleet

No replacements

Freightliner

Plans to purchase new trucks in 2017 by fleet size (Canada wide) Top carriers (500+ trucks)

100% of respondents

Plans to purchase new trucks in 2017 by region Maritime Canada

10%

79% of respondents

20% of respondents

International

5%

Kenworth

27%

Mack

5%

Peterbilt

18%

Large carriers (100-499 trucks)

88%

Central Canada

84%

Volvo

8%

Medium carriers (25-99 trucks)

87%

Western Canada

71%

Western Star

2%

Small carriers (5-24 trucks)

80%

Overall

79%

Other

12%

NEITHER RAIN, NOR SNOW NOR 23 HOURS OF DARKNESS NOR THE FAILED MISSIONS OF TRUCKERS’ PAST NOR ACTS OF GOD. . . SHALL STAY ME AND THESE CHAINED-UP WHEELS FROM REACHING THE FINAL OUTPOSTS OF THIS VAST FRONTIER ®

Lisa Kelly on History Network’s Ice Road Truckers

®

Delo user since 2005 ®

UNCOMMON JOBS REQUIRE UNCOMMON TOUGHNESS

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2016-12-12 1:21 PM

TRUCK WEST JANUARY 2017

5

INSIDE THIS ISSUE

38

The Last Word Razir draws on their experience to run a successful business.

34

7 Editorial

Editor Derek Clouthier seems impressed with the Nikola One and editorial director Lou Smyrlis is not impressed with The Donald.

16 Alberta

11 Sandy Johnson

12 Alberta

20 Rebecka Freels The company newsletter is not dead, but you must know how to do it properly.

It’s now or never when it comes to electronic logging devices.

21 S cott Taylor New year, new CRA house rules; learn what the changes mean for you.

13 Manitoba

22 M arketplace feature Learn how lightweight spec’ing can save you fuel and add to the amount of freight you move.

Province joins New West Partnership Trade Agreement, and MTA eager to get working.

14-15 Equipment

Mark Dalton in... Truckers without borders

37 Ad index

Electronic logging devices means every carrier will be playing by the same rules.

The potential permitted use of wide-base single tires in Alberta undergoing pilot project.

19 Mark Lee

10 British Columbia New guidelines for pilot car operators and City of Richmond gets E3 platinum rating.

An illustrated trucking adventure continues.

Successful campaign for 18 Wheels of Christmas; Rosenau Transport has new president.

Association heads and those in

36 N ewland Transport

17 Alberta

8-9 2017 outlook

the industry offer opinions on what 2017 will bring to trucking.

Historic building used to house trucking company in Southern Alberta town.

35 B usiness Strengthening of dealer market helps Daimler grow its Mexican market share.

Nikola Motor unveils its innovative, hydrogen fuel cell, electric offering.

Gene Orlick, chairman of the Canadian Trucking Alliance (CTA), recently accepted an award from the Canadian Red Cross for the relief work the CTA did in response to the wildfires in Fort McMurray. Orlick said it was an honor to receive the award on the CTA’s behalf. See front and pages 8-9 for Orlick’s take on what 2017 will bring to the trucking industry, and how the Trump presidency could have an impact.

January 2017 Volume 36, Issue 13

ISSN 0700-5016 (Print) ISSN 1923-3531 (Online) Truck West is published monthly by

Newcom Business Media Inc.

CHAIRMAN AND FOUNDER Jim Glionna PRESIDENT Joe Glionna VICE PRESIDENT, OPERATIONS Melissa Summerfield CONTROLLER Anthony Evangelista DIRECTOR OF CIRCULATION Pat Glionna PRODUCTION: Beverley Richards CIRCULATION MANAGER: Pat Glionna

Joe Glionna PRESIDENT 416-614-5805 joe@newcom.ca

Lou Smyrlis

GROUP PUBLISHER 416-510-6881 lou@newcom.ca

Kathy Koras

Tony Hohenadel

Sonia Straface

Julia Kuzeljevich CONTRIBUTING EDITOR 416-510-6880 julia@newcom.ca

Dan Robinson DIRECTOR DIGITAL MARKETING 416-510-5123 dan@newcom.ca

Denis Arsenault

Doug Copeland

ASSOCIATE PUBLISHER 416-510-6892 kathy@newcom.ca

PUBLISHER truckandtrailer.ca 416-614-5800 tony@newcom.ca

EDITORIAL

Sales inquiries Delon Rashid

Sales & Marketing Consultant – Western Canada

403-713-1054 • delon@newcom.ca

Subscription inquiries Lilianna Kantor

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Derek Clouthier EDITOR 403-969-1506 derek@newcom.ca

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We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund of the Department of Canadian Heritage.

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8

TRUCK NEWS

CALENDAR

January 2017

2017 Calendar of Events January

Jan. 14-18 – National Private Truck Council’s Private Fleet Management Institute – Omni Jacksonville, Jacksonville, Fla. www.nptc.org Jan. 17-20 – World of Concrete – Las Vegas Convention Center, Las Vegas, Nev. www.worldofconcrete.com Jan. 20 – Toronto Transportation Club Ski Day – Craigleith Ski Club, Blue Mountains, Ont. www.torontotransportationclub.com Jan. 22-24 – Retail Industry Leaders Association’s Leadership Forum – The Ritz-Carlton Beach Resort Naples, Naples, Fla. www.rila.org Jan. 23-26 – Heavy Duty Aftermarket Week – The Mirage Hotel, Las Vegas, Nev. www.hdaw.org Jan. 23-27 – Commercial Vehicle Safety Alliance’s COHMED Conference – Savannah Marriott Riverfront, Savannah, Ga. www.cvsa.org Jan. 25-27 – SAE’s Government/Industry Meeting – Walter E. Washington Convention Center, Washington, D.C. www.sae.org

February

May

May 1-4 – Advanced Clean Transportation Expo – Long Beach Convention Center, Long Beach, Calif. www.actexpo.com May 4-6 – Quebec Trucking Association’s 66th Annual Conference – Hilton Lac Leamy, Gatineau, Que. www.carrefour-acq.org May 10 – Western Women with Drive Leadership Conference – Delta Calgary Airport In-Terminal Hotel, Calgary, Alta. www.truckinghr.com May 27 – Toronto Regional Truck Driving Championships – Powerade Centre, Brampton, Ont. www.facebook.com/toronto.rtdc May 28-31 – CTRF’s Annual Conference – Radisson Hotel Winnipeg Downtown, Winnipeg, Man. www.ctrf.ca May 30 – PMTC’s Spring Golf Tournament – Dundas Valley Golf and Curling Club, Dundas, Ont. www.pmtc.ca

June June 2-4 – BCTA’s Annual General Meeting and Management Conference – Delta Grand Okanagan Resort, Kelowna, B.C. www.bctrucking.com

September

Sept. 7-9 ­– North American Trailer Dealers Association’s Trade Show and Convention – Indiana Convention Center, Indianapolis, Ind. www.natda.org Sept. 12 – B.C. Trucking Association’s Golf Tournament – Meadow Gardens Golf Club, Pitt Meadows, B.C. www.bctrucking.com Sept. 12-14 – FTR Transportation Conference – www.ftrconference.com Sept 15-16 – National Truck Driving Championships – Manitoba Sept. 15-16 – Lesco Distributors Pro Show N’ Shine – Castrol Raceway, Edmonton, Alta. www.lescodistributors.ca Sept. 15-16 – National Private Truck Council’s National Safety Conference – Dulles, Va. www.nptc.org Sept. 18-21 – TMC Fall Meeting & National Technician Skills Competition – Orlando World Center Marriott, Orlando, Fla. www.trucking.org Sept. 25-28 – North American Commercial Vehicle Show – Georgia World Congress Center, Atlanta, Ga. www.nacvshow.com

Feb. 8-9 – Cargo Logistics Canada’s Expo and Conference – Vancouver Convention Centre, Vancouver, B.C. www. cargologisticscanada.com

June 4-7– Canadian Council of Motor Transport Administrators’ Annual Meeting – Yellowknife, NT. www.ccmta.ca

Feb. 11-18 – Toronto Trucking Association’s Annual Convention – Riu Palace Antillas, Aruba. www.torontotrucking.org

June 9-10 – Atlantic Truck Show – Moncton Coliseum, Moncton, N.B. www.masterpromotions.ca

Oct. 4 – TTC’s Night at The Races –­ Woodbine Racetrack, Toronto, Ont. www.torontotransportationclub.com

Feb. 15-16 – TTSAO’s Striving for Excellence Conference – Centre for Health and Safety Innovation, Mississauga, Ont.

June 10 – Central Ontario Regional Truck Driving Championship – Kitchener, Ont. www.cortdc.com

Feb. 27-March 2 – Cold Chain GDP & Temperature Management Logistics Summit – Hyatt Regency Toronto, Toronto, Ont. www.coldchainpharm.com

June 13 – TTC’s Lunch and Learn for Women in Transportation – Palais Royale, Toronto, Ont. www.torontotransportationclub.com

Oct. 11 – Surface Transportation Summit – International Centre, Mississauga, Ont. www.surfacetransportationsummit.com

Feb. 27-March 2 – TMC Annual Meeting & Transportation Technology Exhibition – Music City Center, Nashville, Tenn. www.trucking.org

June 15-16 – PMTC’s Annual Convention – Crowne Plaza, Niagara Falls, Ont. www.pmtc.ca June 17– Manitoba Truck Driving Championships – Manitoba www.trucking.mb.ca

October

Oct. 11-13 – National Trailer Dealers Association’s Annual Convention – TPC Sawgrass Marriott, Ponte Verda Beach, Fla. www.ntda.org Oct. 20 – Fleet Safety Council’s Annual Educational Conference – Centre for Health and Safety Innovation, Mississauga, Ont. www.fleetsafetycouncil.co

March

June 21 – OTA’s Council Summit – Toronto, Ont. www.ontruck.org

Oct. 21 – STA AGM and Gala Awards Banquet – Saskatchewan www.sasktrucking.com

March 2 – Women with Drive Leadership Summit – Sheraton Toronto Airport Hotel and Conference Centre, Toronto, Ont. www.truckinghr.com

June 30-July 2 – Great Lakes Trucks Club’s Antique and Classic Truck Show – Clifford, Ont. www.greatlakestruckclub.com

Oct. 21-24 ­– ATA Management Conference and Exhibition – Orange County Convention Center and Hyatt Regency, Orlando, Fla. www.trucking.org

July

Oct. 25-26 – Waste and Recycling Expo Canada – Scotiabank Convention Centre, Niagara Falls, Ont. www.messefrankfurt.com

March 14-16 – Green Truck Summit – Indiana Convention Center, Indianapolis, Ind. www.ntea.com March 14-17 – The Work Truck Show – Indiana Convention Center, Indianapolis, Ind. www.ntea.com March 19-21 – IWLA’s Convention and Expo – Hyatt Regency Indian Wells Resort and Spa, Indian Wells, Calif. www.iwla.com March 23-25 – Mid-America Trucking Show – Kentucky Expo Center, Louisville, Ken. www.truckingshow.com March 26-29 – Truckload Carriers Association’s Annual Convention – Gaylord Opryland, Nashville, Tenn. www.truckload.org

April April 2-5 – Truck Renting and Leasing Association’s Annual Meeting – Hyatt Regency Coconut Point Resort and Spa, Bonita Springs, Fla. www.trala.org April 4-6 – SAE World Congress Experience – Cobo Center, Detroit, Mich. www.sae.org April 6-7 – National Heavy Equipment Show – International Centre, Toronto, Ont. www.nhes.ca April 7 – Manitoba Trucking Association’s Annual General Meeting and Spring Gala Dinner ­– RBC Convention Centre, Winnipeg, Man. www.trucking.mb.ca April 20-22 – ExpoCam – Place Bonaventure, Montreal, Que. www.expocam.ca April 21 – B.C. Trucking Association’s Associate Dinner – Sandman Signature Hotel, Langley, B.C. www.bctrucking.com April 27– Toronto Transportation Club’s Taste of Toronto Transportation Night – Palais Royale, Toronto, Ont. www.torontotransportationclub.com

2017 TW Calendar.indd 6

July 8 – Ontario Truck Driving Championships (Skills Competition) – Powerade Centre, Brampton, Ont. www.otdc.ca July 15 – Southern Alberta Truck Expo and Job Fair – Lethbridge Exhibition Park, Lethbridge, Alta. www.southernalbertatruckexpo.ca July 21-23 – Fergus Truck Show – Fergus, Ont. www.fergustruckshow.com

August Aug. 3-6 – Rodeo Du Camion – Notre-Dame-du-Nord, Que. www.elrodeo.com Aug. 7-11 – North American Inspectors Championship – Hyatt Regency Orlando, Orlando, Fla. www.cvsa.org Aug. 13-16 – PeopleNet/TMW Systems’ in.sight User Conference – Gaylord Opryland Resort and Convention Center, Nashville, Tenn. www.tmwsystems.com Aug. 24-26 – Great American Trucking Show – Kay Bailey Hutchinson Convention Center, Dallas, Texas www.gatsonline.com April 28-29 – Alberta Motor Transport Assoc. Leadership Conference – Rimrock Hotel, Banff, Alta. www.amta.ca April 30-May 2 – NPTC Educational Management Conference & Exhibition – Cincinnati, Ohio www.nptc.org April 30-May 3 – Warehousing Education and Research Council’s Annual Conference – Fort Worth Convention Center, Fort Worth, Texas. www.werc.org

Oct. 25-27 – CITT’s Canada Logistics Conference 2017 – Delta Montreal, Montreal, Que. www.citt.ca

November Nov. 3 – MTA’s Annual Fall Awards Gala – Winnipeg, Man. www.trucking.mb.ca Nov. 8-9– Ontario Trucking Association’s Annual Convention – Ritz-Carlton Hotel, Toronto, Ont. www.otaconvention.ca

December Dec. 7 – Annual Toronto Transportation Club Dinner – Toronto, Ont. www.torontotransportationclub.com

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EDITORIAL

TRUCK WEST JANUARY 2017

7

Nikola seems to be putting its money where its mouth is It certainly looks futuristic, so will Nikola Motor Company’s hydrogen-powered, zero-emissions, electric drive truck live up the early hype it has been receiving and reinvent the wheel when it comes to transport truck hauling? Offering all maintenance and service, including things like tires and wiper blades, and no cost for fuel – that’s right, no cost to fill the truck with hydrogen – is quite the deal. Imagine if you bought a car and didn’t have to worry about fuel, oil changes, tires, maintenance, or even wiper blades for one million miles. I think most people would jump at that chance, assuming it was offered at an affordable price. It’s not very often consumers can purchase a product and be guaranteed it will work, and if it doesn’t, not have to worry about the cost of fixing it. But what about performance? Well, according to Nikola, their hydrogen model offers 2,000 lbs./ft. of torque, 1,000 horsepower and a range of 800-1,200 miles per tank. The company even says the Nikola One has a top speed of 65 mph up a 6% grade and can go from zero to 60 mph under load in 30 seconds – pretty impressive. But what about infrastructure, like

Derek’s deliberation Derek Clouthier fueling stations? A hydrogen-powered vehicle would be kind of useless if there were no places to fill it up. Well, Nikola says they have that covered as well with the construction of 364 fuel stations/ truck stops across the US and Canada. OK, so there won’t be as many hydrogen locations as there are gasoline and diesel stations – estimated to be approximately 114,500 in the US and 12,700 in Canada – but with a transport truck getting 8001,200 miles on one tank, you wouldn’t need to stop and fill up very often anyway, so as long as they are properly located across the US and Canada, there shouldn’t be any issue. The Nikola One also weighs less than an average truck, coming in at around 2,000 lbs. lighter than a diesel truck, which the company says equals more freight being transported. So, other than the fact that it ‘looks funny’, assuming this thing works the way Nikola Motor says it works, it’s hard

to point your finger at anything negative. I guess from an environmental standpoint, though it is advertised as being zero emissions, which sounds wonderful, the amount of energy currently required to produce hydrogen is much higher than other fuels, so you’re losing some of that environmental advantage before you even put any fuel in the Nikola One, or any other hydrogen vehicle for that matter, such as the Toyota Mirai and Honda Clarity. But in today’s world, and the transportation needs it demands, there is always going to some kind of environmental impact regardless of what you do. People and goods need to be moved…by road, air, sea or rail. What Nikola has done is really open the eyes of the public, much like Tesla did with its electric passenger car. It’s amazing what can be done when a person, or a group of motivated people, put their minds to it. Would you drive the Nikola One? I’d love to know what your thoughts are on this innovative new truck, and why you feel the way you do about it.

Taking a step back on efficiency is for ‘losers’ Smart government policy challenges industry and the public to create and embrace products sensitive to the needs of our environment while recognizing the need for business to remain profitable. Legislation that doesn’t meet both these goals falls short of the mark. Over the past few years, I have been quite proud of the many advances the trucking industry has made in reducing its greenhouse gas footprint and improving profitability as a direct result. So I shuddered at the news that US presidentelect Donald Trump appointed Scott Pruitt, Oklahoma’s attorney general, to head the US Environmental Protection Agency. Pruitt, like Trump, vociferously rejects that greenhouse gases generated by the burning of fossil fuels is heating the Earth to levels that will result in longterm damage to our planet’s ecosystems. That two people in such positions of power can be so proudly ignorant of overwhelming scientific consensus on

The view with Lou Lou Smyrlis this matter is, to use Trump’s own limited vocabulary, “sad.” To put it mildly. Pruitt and Trump will likely roll back much of the legislation that has driven greenhouse gas reduction and clean air initiatives over the past few years. Pruitt has spent the last six years waging war against those EPA initiatives. I hope the trucking industry will not fall for this lazy, ignorant and unimaginative approach to policy. I hope it will continue on the impressive path of innovation it has adopted in recent years. I am speaking of a path that includes experimenting with autonomous vehicle technology and truck platooning. Recent demonstrations of truck platooning our

SURFACE TRANSPORTATION 2017

ummit

editors attended showing trucks traveling in a platoon formation will average fuel savings of 7%, ranging from 2% for the lead truck to 11% for the next in line and 9% for the tail truck. Traveling in a tight formation reduces wind resistance and also makes better use of road space. I am speaking of a path that continues to push the envelope on aerodynamic improvements. Such improvements could increase fuel efficiency by up to 8%, according to ACT Research’s recently published North America Onhighway CV Engine Outlook. These aerodynamic improvements include airsmoothed hood and roof designs, new bumpers with integrated air dams, new mirrors, revised fender skirts and rear cab mounted air fairings to better manage the air gap ahead of the trailer. Even greater fuel savings are possible when industry tackles the other major part of the puzzle: the trailer. And I’m also speaking of smart legislative moves such as the

Please, write me a letter…your opinions matter and I want those opinions to be read in Truck West. Let’s make 2017 ‘the year of the letter to the editor.’ Derek Clouthier can be reached by phone at (403) 969-1506 or by e-mail at derek@newcom.ca. You can also follow him on Twitter at @DerekClouthier. one announced at the start of December harmonizing the requirements for long combination vehicles across Ontario, Quebec, New Brunswick and Nova Scotia. Or even longer-term projects such as Nikola Motor’s plans for an electric-drive cabover using current generated by a hydrogen fuel cell and emitting only water. What Trump and Pruitt miss in their attempt to turn back the clock on climate and clean air legislation in the world’s largest economy is that it is exactly this kind of challenging legislation that spurs innovation. Without government showing such leadership we are left in the ridiculous position of advocating for the coal industry – a fossil fuel best suited for the 1800s. I don’t know how else to put this, but to again borrow from the stunted Trumpian vocabulary, in my books that makes them a bunch of “losers.” Lou Smyrlis can be reached by phone at (416) 510-6881 or by e-mail at lou@newcom.ca. You can also follow him on Twitter at @LouSmyrlis.

#sts17

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R

BE OCTO

2017

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8 2017 OUTLOOK Alberta’s economy expected to rebound in 2017 Continued from page 1

president Lorraine Card. “But while we expect growth, we don’t know the rate of growth due to the vulnerability of the energy sector.” Card said expected development in the Fort McMurray area, and in and around Grande Prairie with the possible expansion of natural gas fields, would both bring a positive impact to the province’s economy. “However, the Alberta government is set to introduce a 5.35-cent per liter carbon levy affective Jan. 1, 2017, and an additional 2.68 cents in 2018,” Card pointed out. “The eight-cent per liter increase will add significant cost to the transportation industry in an already challenging economy, risking investments and jobs of hard working Albertans.” Gene Orlick, owner and president of Orlicks Inc. and chairman of Canadian Trucking Alliance, said in the current economic climate, consolidation and acquisitions have become a common occurrence. “I would expect it to continue in 2017,” Orlick said, “especially if the economy remains stagnant and larger fleets look to grow their footprint, while some smaller fleets without a succession plan choose to cash out rather than continue grappling with rising costs.” Moving east to Canada’s most eastern, western province, Terry Shaw, executive director of the Manitoba Trucking Association (MTA), said they are always looking or growth in the industry, but he doesn’t see anything indicating that it might happen in 2017. Despite his trepidations, Shaw remains hopeful. “We are optimistic about some changes we’ve seen recently under our new provincial government,” he said, “but how significant or immediate any impacts that might arise from that is something I’m not certain of at this point.” Shaw said the MTA is eager to hear from the newly-elected Brian Pallister Conservative government about the province’s plan for carbon pricing. “This is an item with obvious impact on our industry,” Shaw said. “Environmental policy can enhance economic activity or it can slow it. The Manitoba government is well aware of the tools our industry has suggested on this front.” Staying in the ‘Land of 100,000 Lakes,’ Bison COO Fridfinnson said his cautiously optimistic view for 2017 comes

from the fact that the trucking industry has seen some ‘pretty restrictive forces’ in 2016. “Growth has been harder to come by,” said Fridfinnson, “and certainly call it sustainability of pricing has been even more difficult, particularly in Western Canada. But that being said, we’ve been able to grow our business modestly this year and think that

they’ve had lots of choice and lots of good choice in terms of candidates for jobs,” she said. Yako has little concern that those who moved back to B.C. would migrate east once again to Alberta if the province sees its economy turn around in 2017, as she believes when people find quality employment and become comfortable, they don’t want to move for the

‘But while we expect growth, we don’t know the rate of growth due to the vulnerability of the energy sector.’ Lorraine Card, AMTA president, on Alberta’s 2017 economic outlook we can do the same in 2017.” Fridfinnson said economic indicators are pointing toward positive growth for 2017, especially for Western Canada. “Most economists are on the belief that we are either at or coming out of the bottom of the cycle as it relates to energy and the economy as a whole.” He added that most people who are involved in transportation and are tied into consumer demand, there will be an opportunity in 2017 to rebound from the lows of the previous year. “The tempered demand, particularly in Western Canada, I think we really saw it come into play in 2016 and that was a little delayed from the initial impacts of the fallout of oil,” Fridfinnson said. “Once it finally did start to flow through the system and we had real human impacts, we saw demand soften, but we believe it is poised to stabilize and if not rebound modestly.” Moving to British Columbia, attitudes in ‘The Pacific Province’ are loftier than in other regions of Western Canada. “We were really fortunate in 2016,” said Louise Yako, president and CEO of the B.C. Trucking Association (BCTA). “For the most part, the British Columbia economy withstood the difficulties that other parts of Canada have faced.” Yako went so far as to say that her province benefitted from the economic downturn in Alberta, in that many who left her province to find work in Alberta during the most recent boom, returned to B.C. for employment, helping the economy and local businesses. “I’ve heard from many carriers that

simple sake of relocating. “Unless there’s something that is really pulling them back to Alberta, then I think we’re going to be in a pretty good spot,” said Yako. “What might happen is that once people have come back to B.C., maybe some of them chose

jobs because they thought they should take whatever was available and then they start looking around; there might be some turnover based on that, but I don’t know that will necessarily be people losses due to (some) going back to Alberta.” Yako said local economists expect B.C. to continue doing well in 2017, and even slightly better than the year prior, with an anticipated economic growth rate around 1.7% to 2%, especially if some of the natural resource projects the province is advocating for move forward in the coming year. “I think B.C. will do well in 2017,” she said. “Slight growth, nothing dramatic, but we won’t be going backwards.” The BCTA has a lot of ‘irons in the fire’ when it comes to recommendations and requests to the provincial government, explained Yako – electronic logging devices, changes to wheel base and pilot car requirements – and are hopeful a lot of decisions will get made in 2017 that will be favorable to the trucking industry. “That’s really what I’m looking forward to in the next year,” said Yako.

Surprises from 2016 Last year did hold a few surprises for some in the trucking industry, including STA executive director Ewart, who echoed what many others saw in 2016. “I believe the companies in our province did a good job of managing the downturn in the economy and that they continue to look at ways to diversify their operations to ride out the recession,” Ewart said. Yako saw the same kind of resilience in B.C. , saying, “I think that’s really a testament to the fact that our economy has really become more diverse. We’re less reliant on specific sectors, so that helped us out quite a bit.” Shaw said the trucking industry in Manitoba mirrors the provincial economy, and that his province is much less ‘boom or bust’ relative to some neighboring regions to the west, which he believes translates to Manitoba’s trucking industry. From a company standpoint, Fridfinnson said he is proud of Bison’s performance in 2016, and its ability to main-

FAST

tain a modest growth trajectory. What surprised him, however, was the volatility of certain market places in 2016, and how demand and pricing altered so rapidly in those corridors. “One corridor I would highlight as being under particular pressure is between Alberta and B.C.,” Fridfinnson said. “It’s a big corridor in the West and demand has really changed. You can cite different levels of import activity, different levels of consumer demand in certain locations, but there’s less demand coming out of Vancouver heading east the market has been volatile as a result.” In Alberta, with the fall of oil and gas prices and an overall reduction in that sector’s workforce, there were a number of people with Class 1 license who returned to the transportation industry, which Card said lessened the impact of the driver shortage. However, that could change quickly. “The longer the downturn lasts, the harder it will be for the trucking industry to recover,” Card said.

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2016-12-14 5:33 PM

TRUCK WEST JANUARY 2017

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The Trump effect on Canadian trucking The election of Donald Trump in the US, who will take over as president Jan. 20, 2017, may have come as a shock to some – including Donald Trump himself – but it will be a reality for at least the next four years. Fridfinnson said Bison has discussed Trump’s election as a business, and they adhere to the ‘cautiously optimistic’ mantra so many in the industry embrace. “As everyone is trying to forecast and assess what this presidency is going to mean, lots of rational people are trying to comprehend so many irrational statements,” Fridfinnson said. “So there’s lots of varied opinion on it. Ours is a belief in the strength of sound business relationships that have been established between the countries over a lot of years. Although there’s protectionist language that comes to some degree, we’re hopeful that the validity of the business relationships that do exist are going to be able to persist through that.” Shaw said the rhetoric got ramped up pretty intensely during the US presidential election, but the MTA is going to wait and see what actually occurs during the Trump administration. Ewart concurred, saying the STA view the election results as a ‘wait and see’ issue, as it is too early to make assumptions on what will happen. Card said there is no way of knowing what impact a Trump presidency will have on Canada’s trucking industry until any changes to agreements are followed through with. “While we don’t foresee any major policy changes within the Federal Motor Carrier Safety Administration,” Card said, “it is uncertain if there will be an impact from the US Customs and Border Protection with regards to border crossings.” Many at the BCTA are confident that much of what was said during the campaign will be quite different now that Trump has been elected. “Any worries we might have had have really moderated,” Yako said, “given (Trump’s) statements and the decisions he’s made since he was elected.” Yako pointed to the North American Free Trade Agreement (NAFTA) as an example of an issue Trump has seemingly backed away from since being elected. “I think a lot of that was campaign rhetoric,” Yako said, “and given the fact that he seems to be walking back a lot of the very extreme statements he made during the campaign, I guess people are moderately hopeful that things will go well.” Though many take the ‘let’s wait and see approach’, Orlick is slightly more forthcoming. “Love him or hate him, soon-to-be President Trump will supposedly have a much friendlier approach to fossil fuels and pipelines than the current administration, which would spur investment in the oilsands,” Orlick said. He added that only time will tell whether there will be an immediate impact to Trump’s ‘friendlier approach’, but said removing some of the recent hostility toward the sector would be a good start. Orlick believes that a US president who looks favorably on the oil and gas sector, coupled with the potential of a tightening world supply from the Organization of the Petroleum Exporting Countries (OPEC), would only benefit C

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the western Canadian economy. “If the overall western economy improves,” he said, “trucking improves.” Trump’s anti-free trade rhetoric during the campaign is something that troubles Orlick, particularly those that have been beneficial to Canadian exports. “There have been numerous reports that he will adopt a more protectionist attitude toward Canadian softwood lumber and livestock,” Orlick said. “If true, trucking companies that move these products would be collateral damage.” Orlick said NAFTA, something Trump has eluded needs to be re-negotiated, is vital for both Canada and the US. “We have already seen the markets react favorably to Trump’s election, so there’s reason to be optimistic,” he said. “If this rally continues through 2017, with our marketplace being so tied TruckNews_TruckWest CAN_W16DTMPK_1-2Page.pdf to the US, it bodes well for demand in trucking services.”

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BRIEFS

B.C. lays out new guidelines for pilot car operators VICTORIA, B.C. – British Columbia’s Ministry of Transportation and Infrastructure launched new guidelines for pilot car operators, which clarifies the requirements for travel set out in provincial permits for oversize and overweight loads. “As outlined in B.C. on the Move, our 10-year transportation plan, we committed to reviewing B.C.’s pilot car requirements and developing clear guidelines for pilot car drivers to operate by,” said Transportation and Infrastructure minister Todd Stone. “This new manual clearly lays out requirements for the pilot car operator, from equipment they must carry to driver movements, to make our highways safer for all motorists.” The B.C. government said the new manual, which is the first of a two-part pilot car requirement review, is the most complete guide in Canada for pilot car operators. In addition to safety requirements, the manual includes route planning, contingency plans, pre-trip meetings, check required prior to travel, equipment and communication, traffic control and pilot car movements. The second part of the review will include looking at the number of pilot cars required when escorting oversized loads throughout the province of B.C. Any truck carrying an oversized load on B.C. highways or side roads must be ushered by a pilot car, but the requirements vary depending on the type of load, time of day and kind of road, which can make the process complex compared to other jurisdictions, according to the ministry.

City of Richmond achieves E3 platinum rating VANCOUVER, B.C. – E3 Fleet has awarded the City of Richmond with the first platinum rating for its excellence in fleet management and environmental performance. “An E3 fleet platinum rating is the highest mark of achievement for fleet management in Canada,” said Colin Hansen, chairman of the Fraser Basin Council, a charitable non-profit organization that founded and managed the E3 Fleet program over the last 10 years. “The City of Richmond has shown exceptional leadership by earning this rating, thanks to an unwavering commitment to making its entire fleet cleaner and more efficient.” Richmond employs its Green Fleet Action Plan, which is a component of the city’s Corporate Energy and Emissions Program, addressing all greenhouse gas emissions from city operations. “Richmond has long been committed to energy use reduction through innovation and conservation,” said Richmond mayor Malcolm Brodie. The E3 Fleet program is a Canadawide effort designed to assist trucking, utility, urban delivery, courier, government and other fleets improve fuel efficiency, as well as reduce emissions and expenses.

2016-12-14 5:56 PM

COMPLIANCE

TRUCK WEST JANUARY 2017

It’s now or never o me, Memphis conjures up images of blues bars and Elvis. But the city’s role as a freight hub makes it a big draw for some of the brightest minds in transportation. Not long ago, I was in town for a conference and asked a soon-to-be college grad what excited him most about his upcoming supply chain management career. “Technology,” he said without hesitation. “Data is driving this business.” “So what do you think about ELDs?” I asked. He had no idea what I was talking about. I had to explain the rule and the gargantuan impact electronic logging devices will have on hours of service, trucking and the economy. It reminded me of so many conversations I’ve had with people who could very well be this young man’s boss. Many inside and no one outside the forhire fleet world seems to know what’s coming when the Federal Motor Carrier Safety Administration’s (FMCSA) ELD mandate takes effect in December. Hopefully there will be fewer collisions related to driver fatigue. And how

Permits & Licensing Sandy Johnson about companies, and subsequently drivers, finally getting a full accounting of their time and hopefully paid for it? No more shady work-arounds in order to meet impossible schedules. If the supply chain management grad wasn’t familiar with ELDs for tracking hours of service, then International Fuel Tax Agreement (IFTA) and International Registration Plan (IRP) are not even on his radar. And that’s where fleet tax compliance managers need to pay attention. Already I see ELD vendors telling potential customers, “Don’t worry. Your ELD has GPS. We can do your IFTA and IRP reporting.” They can, but it’s up to you to make sure the ELD vendor fully understands IFTA/IRP requirements and the limitations of using GPS data on distancebased tax returns. Here’s what you should know (that your ELD sales rep probably doesn’t):

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Raw data

By itself, an ELD can’t calculate distance. Its GPS can only read satellite signals and record where a vehicle is (or where a device is) based on latitude, longitude, date and time (some systems also gather an odometer reading). You need software – a routing program or transportation management system – to make the distance calculation. This hardware-software combo is reliable but not perfect. Hardware can malfunction. And there are places like canyons and cities where signals naturally degrade, creating gaps in coverage. When it comes to software, there is no standard algorithm to turn GPS data into points on a map. Given the same information, one program might put your truck on a side road while another shows it on the highway. This is why IFTA and IRP auditors do not accept distance summaries generated by routing or fleet management software as proof of distance traveled. They want raw GPS data – each ‘ping’ – so they can verify for themselves whether your distance reports are correct. It’s a lot of pings

Do you keep these records or does the ELD vendor? If so, how easy is it to get access to all those pings? If you operate a heavy truck with IFTA credentials, you’re required to report all distance that vehicle travels, including empty, dead-head and bobtail miles; personal travel; and even nontaxable miles. Is your ELD set up to do

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that? Or is it just capturing hours of service data? Furthermore, IFTA requires licensees to preserve all records used to create quarterly tax returns and/or annual tax returns for four years from the tax return due date or filing date, whichever is later. IRP requires fleets to preserve records for three years after the close of the registration year. If you also use GPS data for IRP licensing, you’re now obligated to keep it for five-and-a-half years. What if there are gaps in data and you need to recreate missing portions of trips? All of those paper-based records you’d love to do away with – driver expense reports, trip sheets, dispatch records, fuel receipts – will come in handy. As you pore over the new ELD rules, take time to review how your fleet manages GPS data and electronic records across all areas of compliance, beginning with IFTA and other distancebased taxes. Maybe Elvis is alive: electronic logs and vehicle inspection systems. Thank you…thank you very much. Sandy Johnson has been managing IFTA, IRP, and other fleet taxes for more than 30 years. She is the author of the free book 7 Things You Need to Know About Fleet Taxes, and operates North Star Fleet Solutions (www.northstarfleet. com), which provides vehicle tax and license compliance services for trucking operations. She can be reached at 1-877860-8025. To read more of Sandy’s articles, visit www.FleetTaxPro.com.

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2016-12-14 5:40 PM

12

ALBERTA

Initial results reveal less fuel consumption with use of super singles Continued from page 1

three dual and three super single trucks with various weights and configurations and comparing the mileages between them. Super single trucks have better fuel mileage to date than the duals.” Rosenau said in addition to improved fuel mileage, wide-base single tires have longer tire wear than duals, improved stability and better monitoring of air pressure (adding that 20% of the time, the inside tire on a set of duals is underinflated, which he said results in more damage to roads than wide-base single tires). The Alberta government has indicated that wide-base single tires cause more damage to pavement, meaning their adoption would require additional road maintenance. Lorraine Card, president of the AMTA, echoed the fuel saving results indicated by Rosenau, as well as other benefits. “The data continues to be collected and analyzed as we enter into winter driving conditions,” Card said. “Since the pilot began July 1, we have seen no incidents as a result of running (super singles). The drivers testing this technology have commented on improved performance of the vehicle.” Card said a minimum of 10 drivers were selected from each Westcan and Rosenau Transport and were trained on the operation of wide-base single tires, as well as the pilot project’s requirements. “Westcan hauls fuel and Rosenau carries less-than-truckload shipments with a variety of weights,” Card said. “Rosenau’s testing fleet includes straight trucks and trailer, turnpikes and rocky mountain doubles.” Truck West contacted Westcan several times for comment on its participation in the pilot project, but the com-

In addition to better mileage, drivers using super singles during the pilot project have noticed improved performance of the vehicle.

pany declined to comment. Adam Johnson, a public affairs officer with Alberta Transportation, said in addition to measuring the fuel efficiency of wide-base single tires during the pilot project, the effort has also served as a forum for discussion with stakeholders, including a small group of munici-

palities and the Alberta Climate Change Office, on the future benefits and challenges of future implementation. Though he concurred with Rosenau and Card that initial results indicate less fuel consumption when using super singles, Johnson said specific numbers were not yet fully comprehensive.

AMTA supports effort to modernize province’s TRAVIS system EDMONTON, Alta. – The Alberta Motor Transport Association (AMTA) said it is helping and supports the province’s effort to modernize the Transportation Routing and Vehicle Information System (TRAVIS) system.

The TRAVIS system is a software program used for managing the business of issuing and maintaining over-dimensional permits and operating authority certificates. Still in its early stages, the AMTA said

the intent of the project is to update the technology base and make business improvements, which would provide Alberta Transportation and system users with benefits in functionality and productivity.

He also eluded that the testing could continue well past the Jan. 31 deadline of the current phase. “An extension until June 30, 2017 is being discussed,” Johnson said. “Extension until June 30 would provide a full year of data collection under different seasonal conditions.” Like Rosenau, Card would like to see some decisions be made on super singles sooner rather than later. “The AMTA would like to see the new generation wide-base single tires receive weight parity with standard dual tires on all Alberta primary highways,” she said. Though super singles are legally permitted for all trucks, but at a reduced axle load, Johnson said no decisions have yet been made to mirror what some other provinces have legislated. “Future implementation is still being discussed with stakeholders and studied by Alberta Transportation,” Johnson said. “The outcome of our pilot project will inform future decisions.” Card said the AMTA appreciates provincial and municipal governments participating in discussions to potentially allow for the use of wide-base single tires in Alberta, and added that the pilot project is aligned with the provincial government’s target when it comes to cutting greenhouse gas emissions. “With Manitoba part of the New West Partnership Trade Agreement,” Card said, “and having legislated these tires on certain highways with parity to dual tires, this sets precedence for Alberta in removing trade barriers across western provinces.” Chances are, Rosenau would agree, and didn’t beat around the bush when voicing his feelings on the matter. “The Alberta government needs to shit or get off the pot on this one.”

A number of phases, including information gathering, market scan, planning, requirements development, procurement activities and vendor selection, will be implemented prior to the release of the final solution. The AMTA will be providing input into the information gathering phase, and will include a market scan of other jurisdictions designed to help the association learn what the vendor community has to offer.

TMTV www.trucknews.com/videos

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MANITOBA

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Now with seat at the table, MTA eager to tackle priorities with New West Partnership By Derek Clouthier WINNIPEG, Man. – Manitoba premier Brian Pallister announced Nov. 17 that his province had joined the New West Partnership Trade Agreement (NWPTA), making Manitoba an official member of the western group since its inception over six years ago. With Manitoba now part of the NWPTA – which commits each province to enhance trade, investment and labor mobility, and to remove barriers to the movement of goods, services, investment and people – western Canadian provincial governments say it will create an open, common market of more than 11 million people with a combined GDP of more than $750 billion. “Business owners, community leaders and chambers of commerce from across Manitoba have long called for our province to pursue new opportunities for growth and reduced trade barriers,” said Pallister. “Joining the New West Partnership will bring these advantages. We look forward to working with British Columbia, Alberta and Saskatchewan to expand opportunities and support stronger economies right across Western Canada.” Terry Shaw, executive director of the Manitoba Trucking Association (MTA), said his association does not have an official position when it comes to the NWPTA, and a formal discussion with its members on whether it favored joining the agreement never occurred. “Informally, when we communicate with our members, our position is always national, and quite frankly, international harmonization is key,” said Shaw. “What we’re hoping the benefit of us being in the New West Partnership will be is that it will reduce one more layer of disharmonization that we currently experience.” Shaw said Manitoba is gateway province that bridges the western part of Canada to the east, and also have a lot of north-south traffic due to the province’s geographic location. Trucking companies based in Keystone Province not only service this large area, but also experience the different regimes. “So you’ve got the Ontario-Quebec block that kind of works together, you’ve got the US doing their own thing and then prior to us joining the New West our observation had been, you had the Manitoba regime and then the New West regime,” Shaw said. “Manitoba still spoke to and interacted with the New West provinces, but there was no formal agreement, and (we) weren’t at the table when the New West discussions were being had.” Shaw said the fact that Manitoba will now be at the table when those discussion are happening, and be 25% of that four-way conversation, is beneficial. “We need to make sure that the New West Agreement doesn’t trump or detract from national and international harmonization, but it’s certainly a step in the right direction from a Manitoba perspective,” said Shaw. The original partnership agreement came into effect July 1, 2010, and was fully implemented three years later. The four western trucking associations – B.C. Trucking Association (BCTA), Alberta Motor Transport Association (AMTA), Saskatchewan Trucking Association (STA) and MTA – outlined their Top 9 policy issues for the NWPTA

in October, for the first time with collaboration from the MTA. The nine priorities for 2016/17 are: 1) electronic logging device mandates, 2) aligning provincial hours of service in Alberta and Saskatchewan with federal regulations, 3) safety rest areas, 4) mandatory entry level driver training, 5) monitoring and rating US carriers safety performance in Western Canada, 6) weight parity for new generation wide base single tires, 7) long wheelbase tractors in B-trains, 8) reciprocal recognition of pilot car/ flag person training, 9) improving the speed of regulatory change. “We’re now part of the conversation,” Shaw said. “It’s not just what the BCTA, AMTA and STA are putting forth to the New West group; Manitoba is now part of that conversation formally.” Shaw said being part of the NWPTA will hopefully move the province away from being that ‘lone entity’ that inter-

acts with the various provinces and US states surrounding them when dealing with many of those nine key issues, something he said Manitoba felt from time to time. “This will help reduce the part of us being ‘are we with Ontario on this one, are we with the New West on that one?’ We’ll be part of that New West block,” Shaw said. “The New West block will hopefully drive western policies, practices, perceptions, beliefs and desires throughout the national and international discussions.” Other western provinces were also enthusiastic to have Manitoba part of the NWPTA. “Alberta is proud to work with our western neighbors to grow, strengthen and diversify the economy,” said Alberta premier Rachel Notley. “We share a common commitment to creating jobs, enhancing opportunities for en-

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terprise and investment, and increasing prosperity throughout and beyond Western Canada.” “We a re pleased to welcome Manitoba Terry Shaw into the New West Partnership,” added Saskatchewan premier Brad Wall. “We’ve had great success over the past six years in removing barriers and opening up trade within our region. “Together, we can continue to reduce hurdles affecting long-term business opportunities and make western Canada even stronger.”

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2016-12-14 5:41 PM

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EQUIPMENT

Could it work? Trevor Milton, through Nikola, wants to change the face of trucking and put drivers back in the driving seat where they can control their fate, not just the truck By Steve Sturgess SALT LAKE CITY, Utah – Nikola Motor Co. has shown artist renderings of its revolutionary cabover for months at its website www.Nikola.com, but on Dec. 1 company founder and CEO Trevor Milton pulled the wraps off the real thing – an all independent-suspension electricdrive cabover using current generated by a hydrogen fuel cell. And the only emissions from this high-performance heavy truck tractor is a little water. Water is the by-product from the power generated by combining the hydrogen with oxygen in the air, in the proton exchange membrane (PEM) fuel cell that is directly charging the lithium-ion storage batteries. The all-independent suspension truck is revolutionary. Yet that is only part of the story that unfolded recently at the Nikola reveal in Salt Lake City. There is a burgeoning but patchy hydrogen fuel infrastructure in the US, but Milton has a bigger vision for trucking. Hydrogen will be dispensed at 364 Nikola fuel station/truck stops, which are to be built concurrently with the start-up of production of the Nikola One over-theroad tractor. This will give the upcoming Nikola customers an assured and stable price for the fuel, said Milton, of his visionary plan. The plan also calls for sales of hydrogen fuel to owners of the new Toyota Mirai, Honda Clarity and Hyundai ix35, for instance, which will help make such cars viable for long dis-

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tance and cross-country use while improving the business model for Nikola. For them, the hydrogen will equate to around US$1.50 (per diesel gallon equivalent) said Milton. For Nikola One truckers, the cost will be zero. One of the highly attractive parts of

work well. Many have demonstrated their faith by ponying up a US$1,500 deposit for early production slots. At the reveal, one said the economics will prove a winning investment especially for teams because they can get more revenue miles per month.

Milton’s Nikola vision is customers will pay nothing at the pump. The plan is to offer the trucks on a six-year lease that folds in all maintenance, service and consumables like tires, windshield wipers and even fuel for one million miles. The cost of that lease will be finalized in the two-plus years before the truck reaches the market, but Milton says he is shooting for a lease between US$5,000 and $7,000 per month. According to guests – hundreds of owner-operators and small fleets – at the Salt Lake City launch, this could

One of these eager onlookers, though hardly a small fleet operator, was Max Fuller, chairman and founder of one of the nation’s largest trucking fleets. He has pre-ordered so many that his company name – U.S. Xpress – was emblazoned on the Nikola One at the reveal. He said that he was particularly excited by the truck in its first iteration, though things will have to change some to fit in with practical operations. But in a video, he said that he has been more than a few times to the Nikola headquarters to offer his opinions on

what real-world conditions dictate. U.S. Xpress is an over-the-road fleet with team drivers and such team operations are targets of the Nikola One concept. By moving the driver forward to the position previously occupied by the engine, there’s an available 30% more living space for a mini-apartment sized sleeper. Add to that the on-board availability of electric power and the promised extreme comfort from the ultra-rigid frame and independent long-travel suspension, and Nikola drivers will likely be the most professional in a fleet or the most successful small fleet owner-operators. An integral part of marketing a truck is on-road service. Nikola’s Milton has pulled off a coup, right in line with his total trucking vision, by partnering with Ryder System, the leasing giant that has more than 800 service locations in the US, Canada and parts of Mexico. Additional support will be provided in Tennessee and Mississippi – service areas of responsibility (AORs) for Caterpillar dealer Thompson Machinery, an early investor in Nikola. Ryder’s Scott Perry, chief technology and procurement officer, said Ryder’s sales force at the facilities will handle customer enquiries and its 5,300 technicians will be trained to service the new-age trucks. Perry said Ryder is no stranger to new technologies, having embraced natural gas fuel over the last six years. To add Nikola, the company has to provide training in handling the hydrogen fuel

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TRUCK WEST JANUARY 2017

and understanding the unique 800-volt drivetrain. But there’s not a lot of service for the electric Nikola, said Milton. Benefits of the electric drive system include far fewer components in the propulsion and chassis system and a major lowering of preventive maintenance requirements. Under the Nikola One

The next presenter at the technical break-outs was Dave Damion, Meritor’s sales and business director for development for defense and special products. And it comes as no surprise that the Nikola chassis owes much to state-of-the art military vehicle design. Meritor was chosen to partner on the Nikola design and development for its experience in military vehicle suspensions and was given a free hand in developing the revolutionary Nikola setup. Most significantly, the suspension is based on the best military practice of long travel, independent air-ride suspensions. The Nikola is thus endowed with the same robustness and a design that puts load paths to and from the suspension and fifth wheel directly into the structure of the truck. An example is the fifth wheel mounted directly onto the tandem air bags, involving no bending loads into the frame imposed by conventional chassis designs. The frame itself is far stiffer than a conventional truck’s, because of the long-travel integrated air and shock absorber and long and short arm double wishbone suspension at all wheel positions. The ride and handling is promised to be exceptional, contributing to driver comfort and control and lowering the fatigue associated with driving a truck over extended periods. The double-wishbone setup mounts to the frame and to frame-mounted twospeed motor gearboxes for the three driving axles – all wheel positions are driven on the prototype. These are massive on the prototype Nikola, containing individual two-speed gear sets and an electric motor for each wheel. Driveshafts are constant velocity jointed at each end but, because there are motors for each wheel-end, there are no differentials. So, vibration is reduced and gear mesh power losses are eliminated. Accessories such as the air-conditioning compressor, coolant and pressure pumps are electric. Under the hood

ity and weight. Other weight savings come from dispensing with the diesel engine, emissions aftertreatment systems, transmission, prop shaft and differentials. Spec’ for spec’, a Nikola will be around 2,000 lbs lighter than a diesel truck, said Milton. He said the prototype on show scaled 19,000 lbs even with the first-generation motor gearboxes and apartment-sized appliances in the sleeper. Whether the fuel cell or turbine, something like 300-400 kW feeds the Nikolapatented battery pack mounted between the frame rails beneath the sleeper compartment. This battery pack is unique in its cell cooling, which maintains temperatures within two degrees. This ensures good charge density and longer battery life. Using this powertrain in a truck is far easier than a passenger car, said Milton, since a truck offers significantly greater flexibility and space to accommodate a heavy battery pack. The battery pack is sized to contain a maximum 320 kWhr charge (Milton compared this to the biggest Tesla pack at 100 kW-hr). Having such a large capacity allows for reserve power for hill climbing. The powertrain controller is fed with predictive cruise information, so it maintains the best charge associated with upcoming terrain. If there is a grade imminent, charge increases. A downhill grade sees the state of charge at a minimum so the batteries get recharged by regenerative braking going down the grade, incidentally taking all retarding effort away from the service brakes at the wheels. The rated power for the battery/drive package is 1,000 hp and 2,000 lb.-ft. of torque. This is around two or three times the horsepower of a diesel and results in the Nikola being able to climb a 6% grade at 65 mph. The torque is as great as the biggest 16-liter diesels produce but because the motor response is far faster than a diesel’s and peak torque is when the electric motor is stalled, the truck accelerates very quickly. Milton says drivers will really enjoy the performance. And they’ll also appreciate the shorter trip times that will put more money in their pockets, he said. Safety

The Nikola puts safety in the forefront with stability control, accident avoidance on-board, infrastructure connectivity and personal safety all wrapped into the package. Enablers are the vec-

tor torque at the drive wheels, antilock braking, all-electric power steering and a 12-camera viewing system all around the truck. This means lane keeping, automated braking, predictive and adaptive cruise control are all baked in. And with those features enabled, autonomous driving is another feature that is part of the Nikola vision of the future. Because of the faster acting and more powerful braking system, Milton sees the truck as a prime contender for ultra-close platooning. The electric drivetrain makes for a much better connected vehicle, he says. An interesting deliverable from the surround camera system is the personal safety aspect it delivers. Milton said many women drivers are reluctant to park in truck stops and are concerned about what is around them should they have to leave the vehicle. With the Nikola visibility, a driver can even view on his or her cell phone what is outside the truck. Maximizing revenue

A further component of the holistic package is the connectivity of the

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truck, the driver displays and a freight matching service that will be integrated into the Nikola as standard. The service will make it easier for individuals to find freight and increase revenue by as much as 50%. Called Nikola Shipments, it is effectively an on-board loadboard through which brokers around North America can post freight onto the Nikola service; an individual driver can choose where he wants to go, then match freight to the route. This offers the owner-operator or small fleet the opportunity to consolidate less-than-truckload shipments right on the truck. Along with the additional cargo weight and the fuel economy, Milton is looking to change the freight efficiency paradigm and make trucking more rewarding and less stressful for those participating. It will take time to roll out, but it is an example of the way Milton, through Nikola, wants to change the face of trucking and put drivers back in the driving seat where they can control their fate, not just the truck.

Nikola reveals day cabs to come SALT LAKE CITY, Utah - All the sneak pictures of the Nikola truck have shown an over-the-road tall cabover sleeper truck. But at the early December reveal of the Nikola One cabover, company founder and CEO Trevor Milton surprised the audience with images of a day cab variant dubbed the Nikola Two. Intended for regional and distribution haul, it is to feature the same hydrogen fuel-cell/electric drivetrain of the premium Nikola One, but in a much more familiar guise as a conventional, hood forward truck for distribution and vocational applications. Timed for availability in 2020, it should be available to vocational customers around the same time as the Nikola One highway long-and-tall. This came as a complete surprise at the ‘One’ launch but shows company founder Milton is eager to push his disruptive technology of zeroemissions trucking down into areas never before considered likely for zero-emissions status. Details were lost in the general hype for the Nikola One launch. But a zero-emissions refuse truck, for instance, would be the holy grail for companies like Waste Management that have invested so heavily in clean natural gas vehicles for their minimal environmental footprint. And given that the base design for the Nikola chassis is all-wheel-drive with long-travel independent suspension, the day cab chassis could prove highly attractive to a transit miser fleet, special on-/off-highway hauler or heavy hauler. Milton said the chassis could also have rear wheel steering for high mobility. The apparent ruggedness of the chassis from its military heritage could mean sufficiently long service to offset an obviously high initial cost.

So far, no real detail has been offered about the propulsion system other than that the fuel cell in the latest iteration of the Nikola is a PEM, which is a robust and fast-evolving technology. Interestingly, Toyota has recently announced it is looking at similar fuel cell technology for heavy trucks. The decision to go with the zero-emissions fuel cell system was made only recently, switching away from the original concept of a high-speed natural gas turbine to demand-charge the Li-ion batteries. However, Milton said the basic electric powertrain is common and the fact that the chassis has been packaged for both turbines and fuel cells means that in markets where there is a less robust hydrogen fuel infrastructure, the Nikola can be made available with the turbine battery charging. The fuel cell has major advantages where it can be used. Because there is significantly less heat rejection, some of the coolant radiators can be reduced in size or removed, reducing complex-

pg 14-15 tw jan v3.indd 15

2016-12-14 5:43 PM

16 ALBERTA Historic Cochrane building was home to trucking company By Derek Clouthier COCHRANE, Alta. – Nestled on the grounds of Cochrane, Alta.’s Historic Ranche site, the Westerson Cabin looks like any other wooden structure you would find in Canada’s west. But few would realize that the tiny log cabin, which was built in the mid-1920s, was once home to a trucking and shipping business run by brothers Robert and Jock Hogarth. The Westerson Cabin was originally constructed by master craftsman Charlie Pedeprat for Robert Butler, who ran it as a tourist rest stop between Calgary and Banff. Shortly thereafter, it was a trucking company before becoming the home of the Westerson family between 1942 and 1978. From then, it was Cochrane’s visitor information center and historical site before landing in its current resting place in 2014 at Cochrane’s Historic Ranche site. According to Cochrane’s historical reference book More Big Hill Country, trucking companies were prevalent to the municipality and throughout the area. Butler, the Westerson Cabin’s first owner, is said to have been involved in the trucking industry, as was Len Blow,

The Westerson Cabin sits on Cochrane’s Historic Ranche si te wi t h a plaque that says the building was formerly a trucking company.

Wilf Britton, Eddie Bowlen, Harold Spicer and Harvey Hogarth, presumably related to the above mentioned Robert and Jock Hogarth, who ran a trucking business out of the Westerson Cabin. Harvey ran a daily milk route, collecting milk from regional farms instead of each farm having to deliver their product individually, which eventually became

AMTA encourages Class 3 drivers traveling to US to have valid medical certificate EDMONTON, Alta. – The Alberta Motor Transport Association (AMTA) is advising drivers of Class 1-3 vehicles to be vigilant when it comes to maintaining a valid medical examiner’s certificate. The AMTA said all commercial drivers of vehicles in interstate commerce with a maximum gross weight rating over 10,000 lbs (4,536 kgs) must hold the medical certificate, but currently in Alberta, drivers of Class 3 vehicles do not require a medical, and therefore must pay special attention if traveling into

Sarens opens new Canadian head office in Leduc LEDUC, Alta. – Sarens Canada, which offers solutions to heavy lifting and engineered transport, including trailers and transport management, opened its new Canadian head office in Leduc, Alta. Nov. 24. With special guest Ludo Sarens, company chairman of the board, who traveled from Belgium to take part in the event, Sarens has progressed from forestry work in the 1940s, telescopic cranes in the 1950s to now possessing one of the largest cranes in the world, the SGC-120. In 2011, Sarens expanded its services into Alberta with the acquisition of Canada Crane Services. Since then it hasincreased its employment numbers in the province from 70 to approx imately 240 today.

pg 16 tw Jan V3.indd 16

Hogarth’s Transport, according to More Big Hill Country, a company that hauled between Calgary and Cochrane delivering groceries to stores and household items to homes and hotels. The company stayed in the family but changed hands when Harvey Sr. died, when Harvey Jr. and his mother Violet ran the business. One point of contention that is stated

in More Big Hill Country is that Hogarth’s trucking business remains in operation to this day under the name Cochrane Transport. Neither the Town of Cochrane nor Cochrane Transport have confirmed this claim, though Terry Malto of Cochrane Transport told Truck West that there is no connection between the two businesses.

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the US. According to the AMTA, the Federal Motor Carrier Safety Administration (FMCSA) is actively enforcing medicals for Class 3 drivers, which was established in 1986 under the Commercial Motor Vehicle Safety Act. Canadian Class 3 truck drivers operating in the US with a driver’s license recognized as equivalent to the CDL can be medically certified in accordance with FMCSA requirement by a licensed Canadian medical examiner.

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2016-12-14 5:44 PM

TRUCK WEST JANUARY 2017

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Warm hearts persist during frigid 18 Wheels of Christmas campaign Stories by Derek Clouthier CALGARY, Alta. – Rolling across Western Canada again this year, 18 Wheels of Christmas has been collecting donations to help those in need this holiday season. What started in 2002 as an effort to bring together those in trucking industry, help fill food banks across the country and support communities in which they do business, 18 Wheels of Christmas has turned into a raving success, as organizer Colleen Nickel pointed out. “Collectively, we have raised in excess of one million pounds of food for local food banks over the past 13 years,” Nickel said, adding that Rosenau Transport leads the campaign and has been the effort’s biggest supporter and sponsor. Nickel said the campaign looks for non-perishable food items, as well as cash and check donations. “With these donations, we will purchase the groceries, as the premise is to ‘help fill the trailer,’” Nickel explained. A $1,000 donation will get the donor’s name decaled on the Christmas scroll which is then placed on a speciallywrapped trailer for a period of one year. There are currently five wrapped trailers representing Calgary, Edmonton, Medicine Hat, Saskatoon/Regina and a Northern Alberta/B.C. trailer that travels from Grande Prairie, Alta. to Fort St. John, B.C. Nickel said their northern trailer completed a toy drive Nov. 18 in Dawson Creek, B.C., which will head for Chetwynd, B.C., arriving Nov. 26, where it will be set up in the IGA parking lot. This is the first year 18 Wheels of Christmas will visit Chetwynd. With temperatures plummeting of late in the Calgary area, Nickel said there have been challenges this year with collecting and storing donated items. But frigid weather hasn’t put a freeze on people’s generosity. “We had to have the stores keep the donations inside, as the heater on the trailer would not be able to keep the temperature up,” Nickel said. “Even with all the cold, it certainly did not stop dona-

Colleen Nickel, right, organizer of 18 Wheels of Christmas in the Calgary area, and Derek Adams of Wild 95.3 collect donations at the Walden Save-on-Foods in Calgary Dec. 3.

tions from pouring in.” An event in Grande Prairie also took place Nov. 6 and Nov. 11, as well as in Saskatoon for the Santa Claus Parade Nov. 20 and an upcoming event in Edmonton. “(We are) fully engaged this month and well into December,” said Nickel, with an event the Nov. 25-27 weekend in Calgary at Save-On-Foods on Seton Crescent, as well as Save-On-Foods locations in Calgary regions such as Walden Dec. 2-4, Heritage and Panorama Dec. 9-11 and multiple appearances at the Save-On-Foods in Calgary’s Lake Bonavista region every weekend until Dec.

11. As of Dec. 12, Nickel said the 2016 effort has been a success to say the least. “It is with the generous hearts of Calgarians which has kept the dream alive to fill the food bank shelves,” she said. “Even in this economic downturn, Calgary has to be the most giving city in this country.” The total amount of donations collected was yet to be determined in mid-December, but Nickel was confident that the 53” trailer would be packed long and high when all was said and done. The campaign, 18 Wheels of Christmas, is not a registered charity, but

rather provides a means for donations to reach food banks in various communities. Organizers say 100% of all cash and check donations goes to the food bank in the community where the donation originated, and is also used to purchase essential items for food banks. Nickel said they have all the volunteers they need for 2016, but are always looking for more for upcoming years. Those wanting to volunteer or donate to the campaign can e-mail Nickel at 18wheels.xmas@rosenau.ca.

New Year brings new president to Rosenau EDMONTON, Alta. – There’s a changing of the guard happening at Rosenau Transport. Ken Rosenau, who is currently the company’s director of operations, will be taking over for his father, Carl, who announced he was stepping down as company president effective the New Year. “We have always had a tentative plan as to when Carl was retiring, and ultimately it was his decision and the time was right for Carl,” Ken told Truck West. Carl held the position of president since 1988, and will be retiring at the age of 65. Ken’s first order of business as president will be to continue building upon Rosenau’s new areas of service, with new locations now open in Vancouver and Winnipeg. He also wants to continue supporting company employees, customers and stakeholders. “The transition for employees is going to be a concern,” Ken admitted. “Not for all, but some, and I have to reassure them that we have a great team in place

pg 17 tw Jan v3.indd 17

Ken, left, and Carl Rosenau. and the focus will be on the business and making sure we are profitable and efficient at the same time.” Ken said he does not want to make any sudden changes or movements to the way Rosenau does business, and avoid customers and employees using the ‘look what the new guy is doing’ adage. “I will use the transition to foster the relationships with the customers,

vendors and represent the employees and the company at the highest level,” he said. Rosenau also moved from its leased space in East Edmonton into a new distribution center at the Edmonton International Airport, where the company hopes it can tap into the air cargo side of the business. The company’s new distribution and

warehousing space is more than 200,000 square feet and has 44 loading docks. Launched by Gus Rosenau in 1957, the company boasts more than 500 employees with 26 terminals all over Western Canada, moving general freight between Alberta, Saskatchewan, Manitoba and Northern B.C., as well as commodity services across the Prairies with connections in Eastern Canada and the US, running approximately 17 million miles each year. The company provides less-than-truckload, full load, bulk, hot shot/express, consolidation, overnight, deck, container chassis, heated van and scheduled delivery services. In addition to its Edmonton head office, airport distribution center and new locations in Vancouver and Winnipeg, Rosenau Transport has terminals in Calgary, Fort McMurray, Grande Prairie, Red Deer, Regina, Saskatoon, Prince George, Brandon, among others, with facilities to accommodate cross docking, storage, break bulk and dangerous goods handling.

2016-12-14 5:45 PM

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2016-11-16 10:53 AM

OPINION

TRUCK WEST JANUARY 2017

Electronic logs will raise professionalism, rates ’m going back in time this new year. I finished my last ever log book at the end of December and now a little box of electronic magic will be drawing my lines for me, much the same as the tachograph did throughout my 22 years of trucking in Europe. I’m actually looking forward to using the electronic logging device (ELD) as it won’t be a hindrance whatsoever to my working day. Time spent sitting there scratching my head and tapping buttons on a calculator to figure out what hours I have left to work will be replaced with the general simplicity of hitting a button when I stop. The introduction of ELDs was one of the big reasons I chose to sign on with the carrier I’m with. There is no forced dispatch. We are sent a load offer, not a dispatch, and if it cannot be completed on time and legally, then we refuse the load on those grounds and dispatch will either reschedule or put another truck on the load. There is no coercion or ‘persuasion’ – if it can’t be done legally, then it doesn’t get done at all. I’m hoping that the introduction of the ELD mandate raises the game a little; well, a lot actually. Not just elimi-

Every carrier out there will be playing by the same rules, so shippers will have no choice but to listen. nating the cowboy element, but also at shippers and receivers, who will know we no longer will be able to make up for delays in the supply chain. So, companies will have to get their ducks in a row and not use our trailers as warehouses on wheels. Obviously in the real world this will be difficult to achieve, but carriers will now have an electronic record of delays to use as a bargaining tool for waiting time, which will hopefully see compensation get passed on to the driver. For me, this part is irrelevant, as I already get paid waiting time, but there are many who don’t and if it becomes standard practice, it can only make things better. Another potential benefit and possibly the biggest of all is that it opens the door for hourly pay. Now, this is going to cost more, no doubt about that, especially when you consider that legally there should be an overtime rate for hours worked over a set amount. Maybe even a higher rate for weekend working, you know, just like they do in almost every other industry in

pg 19 tw jan v3.indd 19

You say tomato I say tomahto Mark Lee the civilized world. Yes, this will cost more, but seeing as though when you take inflation into account, we’re charging less per mile now than we were 10 or 20 years ago, that is a long overdue shake-up. Not only have rates not kept up with inflation, equipment costs have increased significantly with

the 18-wheel supercomputers that we now use to haul freight. I recently posted on a Facebook page in reply to a question about low rates. My response was that transport is seen as a commodity, rather than a service, and I believe that the use of ELDs will help turn this ridiculous situation around. I’m not talking about using them as a weapon, but their use will allow carriers to sit down with customers and show them exactly what it entails to move their freight from A to B and how

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much it all costs in the real world. Every carrier out there will be playing by the same rules, so shippers will have no choice but to listen. Rates and wages will increase and conditions will improve. This will make the industry an attractive proposition once more and it could help solve the problem of an aging driver pool. Nobody will be making a Smokey and the Bandit movie about a driver running an ELD in a speed limited autoshift truck, that’s for sure, but really let’s be honest. When has driving a truck been anything like that anywhere but the truck stop lunch counter? A fourth generation trucker and trucking journalist, Mark Lee uses his 25 years of transcontinental trucking in Europe, Asia, North Africa and now North America to provide an alternative view of life on the road.

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2016-12-14 5:46 PM

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OPINION

Is the company newsletter dead?

I

f your company produces an employee newsletter, you may be wondering if it’s time to examine its usefulness. Don’t hold a funeral just yet for this workhorse. The company newsletter is far from dead, but it has evolved. With galloping changes in communication technology and the burgeoning number of high-tech loving Millennials in the workforce who enjoy digital communication, it’s a good time to assess what your printed company newsletter is doing for you. The purpose of a company newsletter is to connect a group and harness momentum toward a specific goal. For decades, the printed company newsletter has been a trusty tool used to keep employees on top of the latest news, raise awareness of company strategies, reinforce corporate culture, give employees a method of feeling heard and inspire them to be their best. While some companies are going as far as phasing out the employee newsletter completely and switch-

Communicating strategically Rebecka Freels

ing to intranets, blogs, social media and even video to engage employees, finding the right tool to use to capture employees’ attention continues to be crucial. Before you arbitrarily introduce, cut or reduce any communication channel be sure to conduct research to figure out what connects best with your employees. Different audiences prefer to receive their news via different channels, and the printed word continues to be valued for certain types of information. The advent of digital communication channels has breathed new life into the company newsletter. Newsletter content can now be augmented, even extended, with other channels, and similarly, digital channels can drive employees to the newsletter by enticing prospective readers with what they can find

in the newsletter. If you are going to assess whether to retain, overhaul, revamp or ditch your company newsletter, here are a few tips to keep in mind: Assess your current employee communication

Conduct research to find out how employees feel about current communication. Ask employees how they want to receive company information. Are they getting enough information? Are there gaps? Do they want a way for their own voice to be heard? What about information sharing with teams? Maybe company-wide sharing of ideas and stories? Do they want to see more information about the impact their work has on the company? Ask, don’t assume anything

The most important thing to remember when choosing communication channels is to make sure they connect you with your employees. If your employees love using Facebook and you choose Tumblr as your key platform for social media, you may lose your audience. Survey employees to find out how they want to receive company information (print, e-mail, social media, intranets – including combinations of these), how often and what sort of news they’d like to receive. Ask them about their social media use, Twitter, Facebook, Pinterest and other platforms, as these may make up the preferred mix of channels. (A

new year, new challenge Siemens Transportation Group Inc.

communication channel is the medium used to transmit information. E.g. print, broadcast, online.) From the research I’ve conducted on behalf of transportation companies, employees have repeatedly voiced a preference for being communicated with using a combination of channels. They want to receive communication using digital methods, yet they still think the printed company newsletter is important. A diverse audience requires diverse approaches

The transportation industry has a high number of older employees. Before you go and phase out your newsletter in favor of online-only content, make sure you don’t end up marginalizing a large segment of your audience. Again, ask your employees what communication channels they prefer. If even a portion of your workforce has limited, inconvenient or no regular access to digital devices and the Internet in the workplace, choosing an online-only communication strategy would take away an import opportunity to connect with a segment of your workforce. Your message determines the channel

Videos are becoming an increasingly popular way to connect with employees. Rather than posting a story on the company intranet about a company driver participating in a truck driving championship, why not produce a short video? Let the channel you pick to connect with your audience be one that will capture their interest. Distribution channels must complement each other

Printed and online resources do not need to be an “either/or” option. In my work with transportation companies, it is apparent that combining the two is an ideal way to distribute content, reach a larger audience and target the content better to employee segments. Let the content determine frequency

While it makes sense to share longterm, strategy-focused information and employee profiles in quarterly publications, daily updates to the company intranet are more appropriate for more timely news. Encourage feedback

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Today, everyone wants to have a say. Regardless of what communication channels you use to reach your workforce, remember to encourage employees to share their feedback. Don’t just include a message inviting feedback, actively solicit regular input via surveys, blogs and internal focus groups. Also, give employees a regular voice in company communication by inviting them to be part of an editorial team that meets periodically to plan content. Rebecka Freels, former CTA and OTA communications director, operates a Calgary-based marketing, communications and events practice with clients in the transport industry. Reach her at Rebecka@beyondwordscommunications.com.

2016-12-14 5:47 PM

TAX TALK

TRUCK WEST JANUARY 2017

CRA’s new house rules take effect ome pe ople ne ver learn. Take the case of Tania Kovaluk, a taxdodging dentist from Ottawa. In November 2012, Kovaluk pleaded guilty to multiple counts of evading taxes on $2.6 million in income – some $721,000 worth – between 2003 and 2007. In addition to hiding money in offshore assets, she was a promoter of the Paradigm Education Group, which ran seminars on how to “opt out” of your tax obligation. She even got nine employees at her dental clinic to take part in this scheme. Originally, Kovaluk was sentenced to two years, five months in jail and fined $887,328. But she made no effort to pay the fine after she was released from jail and last October was handed an additional five-year prison sentence. No one likes taxes, but you can’t just not pay what you owe. So educate yourself and get professional help if you need it. Tax rules change often, and this year is no different. New rules on real estate

Tax Talk Scott Taylor

Why the change?

CRA’s literature states they want to promote compliance and administration of our tax system. In fact, the real estate industry has gained a lot of attention in the media with increasing home prices and

stories of foreign investors driving up prices as well. Here’s what CRA is most concerned about: Questionable source of funds: So, you reported $6,000 of income on your tax return the past few years and now you just sold a million dollar home. How’d you manage to cashflow that home all these years? Property flipping: We’ve all heard stories about amateur and professional renovators who buy a house, fix it up, live in it for a short time, and sell it. They claim the principal-residence exemption over and over even though gains on sales should be claimed as business income and therefore fully taxable. Unreported capital gains from property sales: When you sell your cottage or that piece of land Dad willed you, you’re supposed to report it and pay income tax on any capital

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gains. If CRA is going to start checking out land registry offices (this information is public, by the way) then I’m sure they will be writing lots of letters to folks looking for further information on real estate transactions. The penalties for “forgetting” to meet this new reporting requirement can be hefty: the lesser of $8,000 or $100 for each month until it is corrected. As you start thinking about filing your 2016 tax return, the new real estate policy is just one more reason to talk to a professional – and I don’t mean your dentist – about how to report everything properly. Scott Taylor is vice-president of TFS Group, providing accounting, bookkeeping, tax return preparation, and other business services for owner-operators. Learn more at www.tfsgroup. com or call 1-800-461-5970.

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For instance, in the past, all real estate sales other than your principal residence were to be reported on your tax return. Now, starting with your 2016 filing, you must report all sales, period. It’s still the case that if a property has continuously been your principal residence for every year that you owned it, the gain from its sale is not taxable.

Tax rules change often, and this year is no different. However, if you rented out your principal residence or it was used by you in a business then you may owe tax for the increased value that happened during these time periods. CRA has always had a ‘deemed disposition’ policy for these situations when you are considered to have personally disposed of property even though you did not actually sell it (i e. you changed all or part of your principal residence to a rental or you change your rental to a principal residence). This change-in-use policy states you are considered to have sold the property at its fair market value and to have immediately reacquired the property for the same amount. You have to report the ‘sale’ of your principal residence and any resulting capital gain or loss in the year the change of use occurs.

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2016-12-14 5:47 PM

Cut the weight, move more freight

By Derek Clouthier

Y

ou may not be able to bring your semi-truck to the gym or a Zumba class to help it shed those extra pounds, but there are ways fleets can tip the scales in their favor and get their trucks to lose some weight so they can move more freight. Bison Transport recently added 40 new Freightliner tractors to its fleet, and as the Winnipeg company’s equipment acquisition and innovation manager Steven Orbanski explained to Truck West, lightweight spec’ing these trucks was one of his first orders of business when he stepped into the role this past February. “If the weight on our equipment is too heavy, we can’t haul as much payload as we could (otherwise),” Orbanski said. “The problem is really prevalent in the reefer industry, and this is where this project came from…we needed to shave a lot of weight out because we’re not able to compete on that side with our heavy one-truck-fits-every-application kind of deal.” Orbanski needed to cut the truck and trailer’s weight down enough so it could fit a minimum of 45,000 lbs of payload into the reefer, but there were few areas he could find to trim weight from the trailer itself. “There’re only minor items we were able to do on the trailer side,” he said. “We’re experimenting with some lighter dolly legs and lighter-weight hubs, but there’s not really a lot that we’re able to shave out of there because we need that insulation and volume in (the reefer).” Bison used aluminum dolly legs to cut some weight, and has been challenging OEMs to find additional ways to pull more weight from the trailer. With the trailer only permitting so much in terms of cutting weight, Orbanski started focusing on the truck itself. With 25% of Bison’s business hauled by long combination vehicles, the company was unable to shave pounds from the heavy-duty trucks it uses to haul the dual trailers. “On that note, we were able to play with a few items,” said Orbanski. The first was to move away from a 15-liter engine and employ a 13-liter,

pg 22 tw jan v3.indd 22

which saved approximately 550 lbs, not only because of the engine weight, but also the fluids it carried and bracketing required for the engine’s installation and support. Next, Orbanski used lighterweight disc brakes, where he was able to cut about 100 lbs. Bison was also able to reduce the weight of the truck frame, since it did not have to support as much force with the lighter engine, which ended up saving upwards of 200 lbs with the reduced frame thickness and gauge. “We were also able to, on at least one of the models, shorten the hood because of the smaller engine,” Orbanski said. “So shortening the hood and taking out that frame and extra bracketry was a couple hundred pounds there as well.” Mike Palmer, manager of fleet product support for Freightliner Manitoba, said the three main ways fleets can utilize lightweight spec’s is with the engine, cab configurations and chassis options. In addition to using the 13-liter DD13 Detroit engine, Palmer pointed to exhaust configurations. “If the fleet chooses an underslung exhaust compared to vertical exhaust, the weight savings is approximately 115 lbs,” he said. Palmer also said the use of a 13-gallon diesel exhaust fluid (DEF) tank rings in at around 15 lbs less than a 23-gallon DEF tank. Orbanski added that the carry weight alone in the smaller DEF tank saves just under 800 lbs. Palmer also underscored that a Detroit DT 12 automated transmission weighs approximately 340 lbs less than an Eaton Fuller UltraShift Plus 13-speed. Brake drums are another area to shed some weight. “When spec’ing brake drums, there are SteeLite and CastLite drums, which are about 15-17 lbs lighter than regular drums,” Palmer said. Wheel and suspension components are two areas Jason Stubbs, national sales manager for Maxim Truck and Trailer, said fleets can cut weight from their trailers. Stubbs said going to aluminum hubs or lightweight steel hubs, spec’ing the trailer with a lightweight suspension and the overall design of the trailer, specifically the usage of more aluminum like

cross-members, all reduce weight. On the truck side of things, Kevin Bowen, national truck and bus sales manager for Maxim, said there are several ways to lightweight spec’ a truck, including 6x2 axle configurations (where permitted), lighter frame rails, aluminum axle carriers and cross-members and lighter-weight drive axles. “The higher use of plastics in component manufacturing lightens a truck,” Bowen stated, “but durability is compromised.” Stubbs concurred, saying that lighterweight components often cost more and are not as resilient as their steel counterparts. “A lighter-weight spec’ is not for everyone because the additional cost and durability needs to have a payoff,” said Stubbs. “Also, weight in some applications is not a concern.” For Orbanski, he said Bison is always looking for ways to shave weight from its trucks and trailers, as long as it doesn’t compromise the service it provides. “Trying to spec’ for application is a change we are going through,” said Orbanski. “Lightweight really drove this and it’s driving it to other areas of the business. We just try and do our homework, and weight is always a great reduction. It’s always going to be there for us, to try and remove weight out of our equipment wherever possible without hurting the longevity or function that (the truck) needs.” The use of aluminum components is certainly one of the key factors to trimming pounds. Using an aluminum air tank instead of steel saves about 30 lbs; an aluminum fifth wheel sheds around 100 lbs compared to a cast iron fifth wheel; and Alcoa Ultra One aluminum rims are five pounds lighter than regular Alcoa rims, according to Palmer. A smaller fuel tank can also help lighten a truck’s load, which could be a practical option given the need for less fuel with a lighter truck. “We did some calculations on the fuel mileage we were expecting, the routes we wanted to run and where the driver should be able to fill up,” Orbanski explained. “Basically, we wanted to run Winnipeg to Toronto without a fill, and

doing that we went from 300 US gallon tanks down to 200 US gallon tanks.” Orbanski said despite the obvious benefits in fuel economy, exploring lightweight spec’s was predominantly about Bison trying to better compete in the reefer industry. “If you have four guys bidding on a job and one of them can haul way more payload than you, however they do it,” he said. “Operations being able to do that right away and acquire more business was our number one.” After fuel savings, Orbanski said Bison was able to shorten the wheelbase of the lightweight spec’d trucks due to the curtailing of the hood. “Drivers are able to have a little bit more maneuverability,” he said. “And this is without losing any of the driver comforts we have. Driver retention is also a huge priority for us…we were able to keep the same high-rise cabin sleeper with all their fridges and inverters, Bluetooth radios…all that stuff that they enjoy.” Orbanski said Bison considered going even smaller, but after offering drivers some sample trucks to look over, the feedback was that the drivers preferred having some extra space. Bowen pointed out that many of the lightweight spec’s currently available are designed more for the US market due to the country’s maximum 80,000-lb gross vehicle weight rating for a tandem axle tractor-trailer combination. “In Canada, our weight laws are less stringent, so these weight saving options have not proven to be as popular,” he said. “The suppliers of these components design them for trucks that are out at no more than 80,000 lbs. That would be okay if someone was traveling continually in the US, but we all know in Canada that is not the case. Our Canadian road and climate conditions are much harsher.” Bowen added that in 2020, stricter greenhouse gas emission regulations will force manufacturers to use a higher percentage of lightweight components in the assembly of transportation equipment. Well, shedding some weight is seldom a bad thing.

2016-12-14 5:49 PM

TW Marketplace January 17 Pages 2016-12-15 10:03 AM Page 29

January 2017

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TW Marketplace January 17 Pages 2016-12-15 10:03 AM Page 30

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January 2017

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TW Marketplace January 17 Pages 2016-12-15 10:03 AM Page 31

January 2017

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2017 KENWORTH W900L HIGHWAY TRACTOR 72" ACAD SLEEPER, CUMMINS ENGINE; ISX15, 550 HORSEPOWER, 18 SPD TRANSMISSION; 13.2K/40K AXLE(S), 3.91 RATIO, AG460 SUSPENSION; 244" WHEELBASE, RED IN COLOR, BLACK DIAMOND VIT INTERIOR. -273652

2017 KENWORTH T800 HIGHWAY TRACTOR EXTENDED DAYCAB SLEEPER, CUMMINS ENG; ISX15, 550 HP, 18 SPD TRANS; 4.10 RATIO, AG460 SUSP; 205" WHEELBASE, WHITE IN COLOR, DUAL EXHAUST, DUAL BREATHER, DUAL REVOLING AMBER BEACON STK#HJ984957 -502029

2017 KENWORTH T680 HIGHWAY TRACTOR 76" ACDN SLEEPER, PACCAR ENG; MX-13, 455 HP, ULTRASHIFT TRANS; 12.5K/40K AXLE(S), 3.55 RATIO, AG400L SUSP; 232" WHEELBASE, WHITE IN COLOR, 11R22.5 TIRES, TAN VANTAGE INTERIOR, STK#HJ987646. -438062

2017 KENWORTH T880 HIGHWAY TRACTOR DAYCAB SLEEPER, PACCAR ENG; MX-13, 500 HP, 18 SPD TRANS; 14.6K/46K AXLE(S), 4.10 RATIO, AG460 SUSP; 205" WHEELBASE, WHITE IN COLOR, GRAY VANTAGE INTERIOR, 11R24.5 TIRES 4 WAY LOCKS. FINANCING AVAILABLE O.A.C. STK#HJ987377. -295364

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2012 KENWORTH T700 HIGHWAY TRACTOR 75" ACAD SLEEPER, CUMMINS ENG; ISX15, 500 HP, 13 SPD TRANS; 13.2K/40K AXLE(S), 4.11 RATIO, AG400L SUSP; 221" WHEELBASE, WHITE IN COLOR, 4 WAY LOCKS, 11R22.5 TIRES, 785,043 KMS, STK#CJ959167. -438043 $55,000

2013 KENWORTH T800 DAYCAB TRACTOR DAYCAB SLEEPER CUMMINS ENG; ISX15, 550 HP, 18 SPD TRANS; 20K/46K AXLE(S), NEWAY ADZ246 SUSP; 224" WHEELBASE, GREY IN COLOR, 11R22.5 TIRES GRAY SPLENDOR INTERIOR, 4 WAY LOCKS 375,045 KMS, STK#DR958573. -438058 $99,900

2011 KENWORTH T660 HIGHWAY TRACTOR 72" ACAD SLEEPER, CUMMINS ENG; ISX, 485 HP, 13 SPD TRANS; 13.2K/40K AXLE(S), 3.55 RATIO, G380 SUSP; 228" WHEELBASE, WHITE IN COLOR, 11R22.5 TIRES, 3 WAY LOCKS, GRAY DIAMOND INTERIOR, 1,471,082 KMS, STK#BJ945840. -266563 $29,500

2013 KENWORTH T660 HIGHWAY TRACTOR 72" ACAD SLEEPER, PACCAR ENG; MX, 485 HP, 18 SPD TRANS; 13.2K/40K AXLE(S), 3.73 RATIO, AG400 SUSP; 228" WHEELBASE, WHITE IN COLOR, 11R22.5 TIRES, 228” WB, 4 WAY LOCKS, $61,000 796,891 KMS, STK#DJ962541. -266562

2012 KENWORTH T800 HIGHWAY TRACTOR 72" ACFT SLEEPER, PACCAR ENG; MX-13, 455 HP, 13 SPD TRANS; 12K/40K AXLE(S), 3.55 RATIO, AG380 SUSP; BLACK IN COLOR, 11R22.5 TIRES, GRAY SPLENDOR INTERIOR 858,707 KMS, STK#CJ954468. -438049 $57,500

2013 KENWORTH T660 HIGHWAY TRACTOR 72" ACAD SLEEPER, PACCAR ENG; MX, 455 HP, 18 SPD TRANS; 13.2K/40K AXLE(S), 3.73 RATIO, AG400 SUSP; 232" WHEELBASE, BLUE IN COLOR, 11R225 TIRES, BLUE DIAMOND VIT INTERIOR, 4 WAY LOCKS, ENG HOURS 9,408 707,773 KMS, STK#DJ964129. -438052 $75,000

2011 KENWORTH T660 HIGHWAY TRACTOR 72" ACAD SLEEPER, PACCAR ENG; MX13, 485 HP, 13.2K/40K AXLE(S), 3.73 RATIO, AG400 SUSP; 228" WHEELBASE, TAN IN COLOR, 863,475 KMS, STK#BJ948887. -149595 $43,500

FREIGHTLINER CASCADIA HIGHWAY TRACTOR 76" MID ROOF SLEEPER, DETROIT ENG; DDEC15, 505 HP, 13 SPD TRANS; 12.5K/40K AXLE(S), 3.70 RATIO, AIR LINER SUSP; 230" WHEELBASE, WHITE IN COLOR, 871,563 KMS, STK#DSBU0035. -488287 $57,500

KENWORTH T800 HIGHWAY TRACTOR 62" ACFT SLEEPER, CUMMINS ENG; ISX15, 500 HP, 18 SPD TRANS; 13.2K/40K AXLE(S), 3.70 RATIO, AG400 SUSP; 220" WHEELBASE, GREEN IN COLOR, DUAL EXHAUST 664,601 KMS, STK#DJ963829. -502034 $79,900

2013 PETERBILT 386 HEAVY-HAUL TRACTOR 73" SKYRISE SLEEPER, PACCAR ENG; MX13, 485 HP, 13 SPD TRANS; 12K/SUPER 40K AXLE(S), 3.55 RATIO, PB LOW AIR LEAF SUSP; GREEN IN COLOR, 4 WAY LOCKS 605,062 KMS, STK#DD191207. -102783 $56,000

2012 FREIGHTLINER CASCADIA HIGHWAY TRACTOR 52" MID ROOF SLEEPER, DETROIT ENG; DD15, 505 HP, 13 SPD TRANS; 3.55 RATIO, 215" WHEELBASE, BLUE IN COLOR, 856,563 KMS, STK#CSBK3705. -502052 $51,000

2013 KENWORTH T660 HIGHWAY TRACTOR 72" ACAD SLEEPER, PACCAR ENG; MX, 485 HP, 18 SPD TRANS; 13.2K/40K AXLE(S), 3.73 RATIO, AG400 SUSP; 228" WHEELBASE, WHITE IN COLOR, 811,600 KMS, STK#DJ962542. -501900 $61,000

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TW Marketplace January 17 Pages 2016-12-15 10:03 AM Page 32

26

January 2017

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TW Marketplace January 17 Pages 2016-12-15 10:03 AM Page 33

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27

TW Marketplace January 17 Pages 2016-12-15 10:03 AM Page 34

28

January 2017

IN STOCK INVENTORY

2016 MACK GU713 SNOW PLOW MP8-455M ENGINE; 6 SPEED AUTOMATIC ALLISON TRANSMISSION; FXL20 20,000 LB, R S440 44000LB; TENCO SLIDE-IN SANDER WITH REAR DISCHARGE, TENCO PLOW,15 FOOT MIDLAND GRAVEL BOX. STK#50257 -112681

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$199,0 (3) 2013 MACK CXU613 HIGHWAY TRACTORS 70" MR SLEEPER, MACK ENG; MP8, 505 HP HP, 18 SPD TRANS; 12,000 FA 40,000 RA AXLE(S), 3.55 RATIO, AIR RIDE SUSP; 221" WHEELBASE, 575 - 862 KMS, STK#16008 -463315 $54,000 - $64,000

2017 MACK GU813 STRAIGHT TRUCK (CAB AND CHASSIS) MACK ENG; 425M HP, AUTOMATIC TRANS; 18,000 FA 40,000 RA AXLE(S), 3.70 RATIO, AL461 SUSP; 193" WHEELBASE, BLACK IN COLOR, STK#38012. -458960

2017 MACK CHU613 DAYCAB TRACTOR MACK ENGINE; MP8, 505 HORSEPOWER, 18 SPD TRANSMISSION; 14,600 FA 46,000 RA AXLE(S), 3.73 RATIO, AL461 SUSPENSION; 213" WHEELBASE, BLACK RED PEARL IN COLOR, RAWHIDE PACKAGE, GRAND TOURING INTERIOR, STK#25909. -164834

2017 MACK CXU613 HIGHWAY TRACTOR MACK ENG; MP8, 445C HP, AUTOMATIC TRANS; 13,200 FA 40,000 RA AXLE(S), 3.55 RATIO, AL461 SUSP; 203" WHEELBASE, WHITE IN COLOR, STK#83152. -458961

2016 MACK GU714 MIXER TRUCK LONDON MIXER WITH WIRELESS REMOTE; MACK ENG; MP7, 405 HP, 6 SPD AUTOMATIC ALLISON TRANSMISSION; 20000LB AXLE(S), STK# 50256. -115191

2014 MACK CHU613 HIGHWAY TRACTOR 70" MIDRISE SLEEPER, MACK ENG; MP8, 445 HP, 3.40 RATIO, 231" WB, CLEAN TRUCK, WELL MAINTAINED, 816,024 KMS, STK#90091. -501894 $66,000

2015 MACK TITAN HEAVY-HAUL DAYCAB MP10, 555 HP, 18 SPD TRANS; 18/46 AXLE(S), AIR RIDE SUSP; STK#50180. -101656

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2017 MACK CXU613 DAYCAB TRACTOR MACK ENGINE; MP8, 445 HORSEPOWER, 18 SPD TRANSMISSION; 12,000 FA 40,000 RA AXLE(S), 3.55 RATIO, AL461 SUSPENSION; 203" WHEELBASE, WHITE IN COLOR, STK#81169. -164832

2017 MACK CHU613 HEAVY-HAUL DAYCAB MACK ENGINE; MP8, 505 HORSEPOWER, 18 SPD TRANSMISSION; 12,000 FA 46,000 RA AXLE(S), 3.58 RATIO, AL461 SUSPENSION; 213" WHEELBASE, WHITE IN COLOR, RAWHIDE PACKAGE, GRAND TOURING INTERIOR, STK#25910. -164831

2015 MACK CXU614 60" MID-RISE SLEEPER HEAVY DUTY TRI-DRIVE TRACTOR. 12 SP MDRIVE TRANSMISSION, 265" WB, 14,600 FNT. STK#50170 -

2016 MACK GU533 DUMP TRUCK CUMMINS ISL-D, 345 HORSEPOWER, ALLISON 3500 AUTOMATIC TRANSMISSION; 16,500 LB - 40,000 LB AXLE(S), AIR SUSPENSION; ALCOA LEVEL ONE ALUMINUM" WHEELBASE, WHITE IN COLOR, STOCK #50265. -101987

455768

2017 MACK CXU613 HIGHWAY TRACTOR 60" MR SLEEPER, MACK ENGINE; MP8, 505 HORSEPOWER, 12 SPD TRANSMISSION; 12/40 AXLE(S), 3.58 RATIO, MAXLITE SUSPENSION; 227" WHEELBASE, RED IN COLOR, STK#76615. -116355

(2) 2017 MACK CXU613 HIGHWAY TRACTORS 70" MR SLEEPER, MACK ENGINE; MP8 , 505 HORSEPOWER, 18 SPD TRANSMISSION; 13,200 FA 46,000 RA AXLE(S), 3.73 RATIO, AL461 SUSPENSION; 203" WHEELBASE, WHITE IN COLOR, STK#80284. -164835 2017 MACK CXU613 HIGHWAY TRACTOR 60" MIDRISE SLEEPER, MACK ENG; MP8-505C, 505 HP, 3.40 RATIO, 221" WB, STK#50376. -501913

2016 MACK GU713 STRAIGHT TRUCK (CAB AND CHASSIS) MACK ENG; MP8, 505 HP, MDRIVE AMT; 16,500 LBS -44,000LBS AXLE(S), AIR SUSP, SPEC'D FOR 15 'GRAVEL BOX. STK# 50283.. -101988

$151,0

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(2) 2017 MACK GU813 MIXER TRUCKS MACK ENG; MP7, 395 HP, 6 SPD TRANS; 20/46 AXLE(S), 4.19 RATIO, HM460 SUSP; 301" WHEELBASE, WHITE IN COLOR, STK#37058. -278348 $199,000

2016 MACK CXU613 STRAIGHT TRUCK (CAB AND CHASSIS) MACK ENG; MP8, 6 SPD TRANS; 445 HP, 14.6/40 AXLE(S), 4.11 RATIO, AL461 SUSP; 203" WHEELBASE, WHITE IN COLOR, SPEC'D FOR 15-16' BOX OR DECK, $119,000 STK#53628. -111803

00

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TW Marketplace January 17 Pages 2016-12-15 10:03 AM Page 35

January 2017

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2017 MACK GU713 GRANITE B.C. TANDEM TANDEM CONCRETE MIXER MP7-405 HP, FULLER RTLO16909LL, DUAL 20,000 FRONT AXLES, MERITOR RT46-164EH ON HENDRICKSON HAULMAX WITH DUAL LOCKERS, LONDON BRIDGEMASTER (3) MIXER …..IN STOCK AND AVAILABLE IMMEDIATELY QUALIFIES FOR FREE 5 YEAR ENGINE & EMISSIONS WARRANTY. -455755

2017 MACK CHU613 HIGHWAY TRACTOR MACK ENG; MP8 505C+, EATON 18, 14.6 FRONT, 46 REAR AXLE(S), 235" WHEELBASE, STK#35640

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FICTION MARK DALTON: OWNER/OPERATOR

THE STORY SO FAR Bud asks Mark to start taking loads for a new company. At first Mark isn’t interested, but Bud convinces him it would be good for Bud’s other drivers, many of whom are looking for regular, steady loads. Mark takes the first load for the company, but the paperwork is all wrong and Mark ends up having to drive the load back to Toronto because he had taken the wrong trailer… • In the morning, Mark prepared for another assault on the border. This time, however, he double- and triple-checked everything to make sure he had picked up the right trailer and that everything was correct with the paperwork. Finally, he checked that the load in the trailer matched the load he had on paper. Only when he was sure everything was right with the load, did he slip Mother Load into gear. “I dare them to stop me this time,” he said aloud to himself. But after a few minutes on the road, and once he was comfortably on Hwy. 403 on his way to the border, he felt like having a chat with Bud. After all, there was plenty left unspoken after the first load for this new company had gone so wrong. He dialed up Bud and turned up the volume to ensure he’d have no trouble hearing the call hands-free. “Well, well,” Bud said. “If it isn’t Mark ‘Wrong-Trailer’ Dalton.” “Very funny,” Mark said. “You got the right trailer this time? Or did you just pick up any old trailer that was in the yard?” “I got the right one this time.” “That’s good, because they’ve been asking if you were really the best driver I had working for me. When I assured them you were, they couldn’t help but feel sorry for me.” “Sorry for you?” Mark said. “I was the one who showed up at the border with the wrong load and had to drive all the way back to the yard.” “Hey, we all tried calling you. What can we do if you don’t have your phone on?” Mark was at a loss for words. Of course it was his fault he had to make an entire round trip with the wrong load, but he wasn’t about to let the shipper, broker or Bud off the hook. “You guys are supposed to look out for me, warn me that all their trailers look the same…that I should check the numbers to make sure I’ve got things right.” Bud said nothing for the longest time. Mark wondered if he’d hung up. “You still there?” “You’re kidding me, right?” “No. You’re supposed to look out for me, not send me on wild goose chases.” “You want me to tell you to put a hat on when it’s cold? To use your wipers when it’s raining?” A pause. “Anyway, you like wild goose chases.”

“That’s besides the point. I wouldn’t call having to turn around at the border an adventure. Just a money-losing pain in the ass.” “Speaking of which,” Bud said, his tone suddenly getting serious. “I talked it over with them and they’ve agreed to pay your mileage to and from the border.” “How’d you do that?” “I told them that they had a responsibility to make sure you took the right trailer. If they’re not sure what’s leaving their yard, why should it be all on you?”

• When Mark reached the border at Fort Erie, he couldn’t help but be nervous. Even though he’d been through this process hundreds, perhaps even thousands of times before, he always felt a bit of tension crossing the border. There was no rational reason to fear the border, especially since Mark rarely exceeded his allowable spending limits, but a few bad experiences had been enough to make each and every border crossing an ordeal for him. And, as Mark’s luck would have it, there appeared to be a problem with Mark’s load. “Mr. Dalton,” said the customs officer, “we’ve got a problem.” “No kidding,” was all Mark said. “Yes. It seems there’s no entry on file for your load.” “Why not?” “The entry number is not a match with PAPS.” “What’s PAPS? Sounds like a brand of beer.” “Pre-Arrival Processing System.” “Okay, so how do you fix it?” “You’ve got to get in touch with your broker. They can update the entry so the PAPS number matches the entry.” “Oh, is that all?” Mark said, not trying very hard to keep the sarcasm from his voice. “Well, that’s what I’ll do then.” “Good,” the officer said, immediately moving onto something else. “Why does this always happen to me?” Mark said aloud. Then he stepped out of the office and called up the shipper on his cellphone. When the man answered, Mark spent a couple of minutes explaining the situation, then said, “They say the PAPS number doesn’t match the entry.” He was expecting a groan or a sigh: “What?” But instead the man simply told Mark it was a small problem and he’d call the broker right away. With any luck he’d be on his way in no time. “Yeah, sure,” Mark said under his breath as he hung up the phone. “There’s no way in hell they’re getting this mess sorted out in less than an hour.” So instead of heading back into the customs office, Mark headed for Mother Load where he could at least nap for an hour or so while the broker figured out the problem. But before he’d even made himself comfortable, the customs officer was there knocking on his window. “Good to go.” “What? How?” “The entry’s complete,” the officer said. “You’re free to cross the border. Enjoy your time in the United States.” “I’ll try,” Mark said in disbelief. He started up Mother Load, happy that he’d cleared a seemingly huge hurdle. This was better, he thought. But still, not good enough.

Truckers without borders

It was Mark’s turn to be speechless. “So, you can take back your ‘looking out for you’ bull and do your job right so I won’t have to stick my neck out for you again.” “Okay, I take it back. And, I guess… thanks for having my back.” “And?” “Sorry I screwed up,” Mark said. “We all make mistakes, right?” “Then why are you being critical of a broker who fixed your mistake and paid you for it even though they didn’t really have to.” Mark thought about it for a bit, then said, “Bud, if I wasn’t complaining, what would we talk about?” “How ’bout them Leafs?” Bud said. “Uh, I gotta go!” Mark said, hanging up the phone.

Mark Dalton returns next month in Part 4 of Truckers without borders.

Illustration by Glenn McEvoy

By Edo van Belkom

PART 3

34

BECAUSE YOUR TIME COUNTS,

RELY ON MICHELIN CONTACT YOUR LOCAL REPRESENTATIVE OR VISIT MICHELINTRUCK.COM.

pg 34 tw jan v3.indd 34

2016-12-14 5:50 PM

BUSINESS

TRUCK WEST JANUARY 2017

35

Daimler grows market share in Mexico Company believes Mexican market offers further opportunity to expand By James Menzies PUERTO VALLARTA, Mexico. - Daimler continues to grow its share of the Mexican truck market, in large part due to a strengthening of the dealer network. The company now controls 36.2% of the Class 8 market in Mexico, up about 7.8% compared to last year, according to Stefan Kurschner, president of Daimler Trucks Mexico, who gave a business update in December. Daimler set out to become the industry leader in Mexico and has achieved its goal. “We feel that above 36%, we can claim market leadership,” Kurschner said. “I don’t want to be arrogant about those numbers. It is a lot of confidence a lot of new customers have put in us. It’s a journey. We are on a road to leadership and that’s what we are going to continue.” There is plenty of room for growth in the Mexican market, according to Kurschner. Today the Class 8 market represents about 30,000 trucks a year and is growing at a pace of about 18% annually. But that’s not enough, Kurschner said, given the size of the country and the age of the fleet. The average Class 8 truck in Mexico is 17.8 years old and there are 150,000 trucks in the country 20 years or older. “I think an economy of this size should have a market of at least 60,000 and not 30,000, as it is represented today,” Kurschner said. A scrapping program that provides incentives for replacing older trucks has been reasonably successful, Kurschner said, and needs to continue and expand. Daimler has sold about 1,000 new trucks through the program, which benefits the environment. One key differentiator for Daimler in Mexico is its strategy of peso pricing. Traditionally, all OEMs in Mexico priced their vehicles in US dollars, complicating the sales process and putting customers at the mercy of unpredictable swings in currency. Trucks are now priced in pesos and prices are guaranteed for six months. “It takes uncertainties from our customers away and we are going to continue that,” Kurschner said. “This is not an incentive program or a marketing gag.”

pg 35 tw Jan v3.indd 35

‘We feel that above 36%, we can claim market leadership. I don’t want to be arrogant about those numbers. ’ Stefan Kurschner, president of Daimler Trucks Mexico Dealers representing Daimler’s dealer council said at the briefing that peso pricing has been well received by customers since its implementation last year. “Our customers can truly forget about the exchange rate and have certainty and standardization,” said Fernando Zapata, president of dealer Zapata Camiones. “The dealer network said we need to do something, uncertainty really hinders our customers to do business. So, we did a lot of customer interviews and after realizing a lot of our customers have their revenues in pesos, it was a clear decision if they bill in pesos, they want to pay in pesos,” Kurschner said. Zapata said other OEMs have attempted to copy the idea, but without success. Daimler has financial instruments at its disposal and the ability to hedge – tools that a fleet itself is unable to utilize. The Mexican dealer network has modernized its processes and now works together as a cohesive unit across the country to better service customers. A key element to this is the so-called Mutual Promise, which all dealers commit to. “It’s a document the dealer network and the OEM has signed that has a description on what we are going to deliver as a service experience to our customers,” Kurschner explained. “It’s a customer bill of rights, a promise of what we are going to do for the customer.” Traditionally, according to Zapata, dealers were focused on serving only their own customers. Now a customer can expect the same service levels at any dealer in the country. “The same service and same quality

and same conditions negotiated with every single dealer, wherever he goes in the country,” Zapata said. “That is amazing.” Alejandro Rivera, president of the dealer council and head of Camiones Rivera, said dealers have implemented new platforms so they enjoy better communication between dealerships and with the OEM. An Evolucion Elite program has also been implemented, recognizing dealers that have taken steps to improve processes. Repair times was an issue in Mexico,

with the average repair as recently as 2013 taking nine days to complete. Jaime Tamez, president and CEO of dealership Difrenosa, said that has been driven down to less than three days and in most months this year, his dealerships have completed repairs on average in about a day. “Our objective as a dealer network is to keep clients’ trucks on the road. We have done a lot of work behind the scenes to achieve this,” said Tamez. One enabler has been 24/7 parts delivery. In 2014, Tamez said, the parts distribution center would send out one shipment per week. That increased to three a week in 2015 and now, deliveries are made daily. “It means in many cases a huge difference for customers and also for dealers, because we have an opportunity to keep our inventories rotating and our customers much more satisfied,” Tamez said. “For every specialized part, we have a delivery 24 hours later. I can say this is a big accomplishment in the last few years.”

MTA claims big advocacy win with removal of US data from provincial carriers WINNIPEG, Man. – The Manitoba Trucking Association (MTA) is touting the removal of US inspection, violation and accident data from provincial carrier profiles in the Commercial Vehicle Safety and Permits (CVSP) carrier profile system as a big advocacy win for the association. Commencing Dec. 1, the Motor Carrier Division of the CVSP began authorizing the removal of all US data from inspections, convictions and accidents from Manitoba carrier profiles. The MTA advocated for the removal of all US data because the association believes if a provincial carrier obtained a violation in the US, and that violation was added to a US carrier profile, it could trigger a facility audit.

It would then be unfair for the same violation to be used a second time on a Manitoba carrier profile, as it could again trigger an additional provincial facility audit. The MTA said this case of ‘double jeopardy’ was unwarranted, and that Manitoba carriers should be treated the same by Canadian jurisdictions as US carriers are treated by the Federal Motor Carrier Safety Administration, which does not use Canadian data to rate the performance of its carriers. The MTA has been requesting the removal of US data from Manitoba carrier profiles since the US chose not to implement the 2008 Canada/US Memorandum of Understanding on Safety Rating Reciprocity.

2016-12-14 5:51 PM

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Moving in the right direction Winnipeg’s Razir Transport expands its reach with venture south of the border By Derek Clouthier WINNIPEG, Man. – Since their beginnings in 2006, Razir Transport Services has managed to do business the right way in the Great White North and have now taken their certified brand south of the border. With approximately 45 trucks and 75 trailers, Razir hauls frozen beverage and food products, or anything that requires temperature control and is timesensitive. But it’s not enough for the Winnipeg company to move a product from one place to another; Razir likes to prove to its customers that they are doing things the right way. As company logistics and sales manager Craig Barkman said, one of the biggest accomplishments Razir achieved in the past year was to become certified under Hazard Analysis and Critical Control Point’s (HACCP) food safety program. “It’s basically keeping the food chain intact from production through transportation up until delivery,” Barkman said, adding that more companies these days are looking to become HACCP certified. “It’s becoming a more popular thing in the last few years. There are still not a lot of companies that have it, especially trucking companies. “It’s something that is a selling feature. If we go knock on someone’s door for the possibility of new business…hey, we’re HACCP certified, and the next door to us, he’s probably not.” Razir is also one of only a handful of companies that is certified under Iron Apple’s Food Safety Training for Carriers Transporters, Brokers and Shippers. With between 40-45 drivers, two of whom are owner-operators, and 15 office employees, Razir’s roots stem from the road. Amandeep Grewal, co-owner and accounting manager, was driving a truck since the year 2000 as an owner-operator, and said he starting in the business along with his brothers, including Hard-

eep Grewal, who is the safety and compliance manager for Razir. “My dad owned a trucking company in India, and we got some good experience from him when we were young,” said Amandeep. “We know how to operate this business from when we were kids...and that’s why we all loved driving. We drove trucks all of our lives and that’s why we’re here.” Hardeep said the experience he and his brother have attained as drivers translates over to running a business, in that they understand what their employees need to get the job done. “We know exactly what the driver needs,” Hardeep said. “We try to do our best so that the driver has flexibility with time for delivery and for pick-ups. There is a lot of stress while driving, so we give our drivers extra time to get that stress out.” Changing times and a changing economy can also add stress, particularly as a business owner and for those looking to help grow a company. “It’s more and more competitive each and every day, and customers are demanding more and more from everybody, every day,” Barkman said of the current economic climate and the recent downturn in Alberta. “It’s not just, pick up a load and deliver it whenever you want; there’s people checking up on you on a daily basis wanting to know where the trucks are and how their freight is doing, but there is no extra pay. We are having to do more for the same amount, or less, because everybody else is trying to get that piece of the pie as well.” But for Razir, keeping drivers and customers happy is the primary objective. “I think the industry as a whole is getting better and think the economy is turning around slowly and going in the right direction,” he said. One direction Razir is going is south. The company sent its first truck across the border and into the US in early November, and for Salil Prabhakar, assistant accounting manager for Razir, their

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Experience as drivers has helped the crew at Razir Transport flourish.

venture south will hopefully help double the amount of business the company does in the next five years. “We’re starting a new division,” Prabhakar said. “Till now we were just within Canada, and this month onwards we started doing the US also.” Barkman said they hired a new sales and logistics manager to help with the company’s cross-border endeavor. “Obviously the laws are different, and there’s border issues and paperwork,” Barkman said. “I’m sure there’s going to be some challenges and obstacles, but we’re looking forward to it.” Technology is another key focus area for Razir, with the primary goal of keeping their drivers safe. “As a former driver, things have changed a lot,” Barkman said. “Nobody likes change, but ultimately it happens all the time and you have to deal with it and accept it. Sure there’s going to be some older guys out there who were driving when there were two sticks on the floor and now everything is automated.” Barkman said they were in the process of installing dashboard cameras on all their trucks, but not for the purposes of playing ‘big brother’ with their drivers, but rather to keep them from getting into trouble in event of an incident. Barkman chronicled a recent incident with one of their drivers who was involved in a collision where a pickup truck coming around a curve collided with the transport and the driver of the pickup was texting during the crash, which the dashboard camera captured on video. “Unfortunately, what it comes down to is covering yourself,” Barkman said.

“But it’s a small expense to pay instead of going through a huge court case. “It’s a proven cost-effective way in the unfortunate case where there’s an accident, you’ve got proof right there. Customers definitely like that.” With regards to greenhouse gas emissions, Prabhakar said Razir recently established a team that is tasked with addressing the amount of emissions emitted by the company, something they take into consideration when purchasing new equipment. He also said all of the company’s trucks are monitored by GPS in an effort to help drivers if there is an emergency. As for electronic logging devices (ELDs), Razir is preparing for the device’s mandated usage by the government, but are waiting to see what the new regulation will look like. “Electronic logs…we know it’s coming, there’s nothing we can do about it, we have to accept it, learn it, live it and move on,” Barkman said. “Some guys are probably going to leave, unfortunately, but for the most part, I think everyone will realize down the road that it’s a good thing and we should have done it a long time ago.” Razir is hiring drivers at this time, and those with mountain experience are encouraged to apply at www.razirtransport.ca. “We’re always looking for good, experienced reefer haulers with mountain experience,” Barkman said. “We could use one right now. Guys come and go, it’s the nature of the beast, but I think our turnover ratio is probably a lot less than some companies. “We’re going in the right direction, the industry as a whole.”

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2016-12-14 5:53 PM

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2016-10-11 1:45 PM