Understanding the makeup of heavy haulage costs

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At a glance

  • Bigger loads need specialised equipment, raising costs.
  • Longer, more difficult routes increase running and time based expenses.
  • Larger Oversized loads require increased Permit and Third Party Involvement.

 

A Heavy haulage project can become costly due to complexity and many third party’s involvement. From the method of arrival into the country, right through to the management of the project site, costs can exacerbate when members of the supply chain do not have a robust understanding of how their part, impacts the project cost. This is where the experience of a company such as ODLS is invaluable to keep these costs under control without sacrificing safety or project reliability.

ODLS is all about providing clarity on costs early in the estimation phase and clearly communicating the critical elements which may impact the final figure. ODLS have a full understanding of the entire process end to end and can arrange the elements to achieve the most conservative cost outcome. In this blog, we shed light on the sometimes unexpected elements affecting heavy haulage and heavy lift costs, giving our stakeholders a valuable resource for powerful decision making within their projects.

 

Key Factors Influencing Heavy Haulage Costs

 

Haulage Equipment

 

On the surface, it seems obvious that the size and weight of your cargo is the primary influencer of the Heavy Haulage Transport cost. To a degree, this is correct, heavy haulage equipment is built using specialised materials and components, which come at a high purchase price and therefore are more expensive to hire for the customer.

The interesting aspect of equipment is how the asset specifications impact the Heavy Haulage Transport cost. For example, a super heavy haulage prime mover may cost 50% more than the next most appropriate vehicle, but when multiple vehicles are joined in a Superload or Heavy Haulage configuration, the number of trucks required for the pull/push power impacts the overall length of the transport. This then impacts the involvement of regulatory third parties and their cost.

 

Transport Route

 

The next largest influencer is the transport route. The length of the journey, the roads being travelled and the time taken to complete the Heavy Haulage Transport, will change costs dramatically. The kilometers travelled has an obvious effect on costs, increasing vehicle running costs and driver wages.

The less obvious cost is the number of days on road, which can be the result of a slow moving combination and is often overlooked by customers comparing quote estimates. While ODLS has the experience to estimate Third Party costs, many Heavy Haulage operators exclude these, and new players may not even know how many days their journey will take. Imagine that you, as the Customer, is expected to pay Third Party costs separately to the core transport cost, and you don’t know how many days they will be required!

Finally, the chosen Heavy Haulage Transport path will impact the costs due to infrastructure management.

ODLS has a firm understanding of all of these parameters Australia wide, limiting Customer exposure to escalating transport costs.

 

Permit and Regulatory Costs

 

Overdimensional and Superloads come with a great deal of Project Management involvement, both internally and for Road Authorities, which are reflected in Permit and Superload fees. The final permit might include conditions leading to fees from local councils, assessments for roads or bridges, and clearance applications for overhead assets. Third Parties such as Power, Rail, Telstra or Optus may be involved. Failure to carry out these assessments and gain approvals can lead to incidents, jeopardizing Public Safety, causing delays and Liability costs. Interestingly, the cost for Third Party involvement in a Heavy Haulage operation can be as high as 30-40% of the overall price estimate. ODLS handles the permit application process responsibly and effectively, guaranteeing that all requirements are met and stakeholders are fully informed.

 

On Road Public and Load Safety

 

Moving a Superload (cargo that goes beyond usual size or weight of the Overdimensional category) requires additional consideration for Public Safety. ODLS Project Managers work closely with the Road Authority to ensure the Public are notified and that they, and load are adequately protected while On Road. This involves additional fees from both the Road Authority and ODLS to engage and manage Third Parties, such as advertising and public notifications, Traffic Control and Security while the Superload is parked up.

 

Costs to Establish Travel Envelope

 

Travel envelopes are not always readily available in some areas. When travelling through older built-up areas such as Melbourne and Sydney Metro, infrastructure and vegetation can impede safe travel of a Heavy Haulage combination.

Sometimes, Super Heavy Haulage may require road equipment such as signage, traffic lights, or barriers to be temporarily removed to facilitate safe travel. While this adds to the total cost, it is vital for a safe and successful transport operation. ODLS collaborates with local councils and authorities to make this process efficient, causing minimal disturbance and controlling costs where it can.

Trees and vegetation can also impact the Travel Envelope. While the Road Authorities are ultimately responsible to maintain a Travel Envelope on-road, no one can forsee weather and growth patterns to guarantee tree branches will not impede travel. The ODLS team relies on experience and feedback from many journeys to identify potential issues. In addition we carry out Desktop Route Surveys, On-Road Route assessments and final site inspection for the most up to date data. ODLS is experienced in planning and managing the process of Approvals and physical Tree Trimming.

 

Infrastructure Protection

 

Moving Overdimensional and Heavy Cargo across bridges, leads to a specific set of considerations. Permit conditions may require bridge pre-inspection, bridge monitoring during transit or temporary bridges. These steps confirm the bridge’s current capacity, protect the bridge during transit and monitor the effect of the transit. While this increases costs, this is a vital part of ensuring the infrastructure can operate effectively in the years to come. ODLS understands it is in everyone’s best interests to ensure all requirements are responsibly met.

At times, Asset managers require Dilapidation Reports to record the state of streets, structures or buildings before and after Heavy Haulage transport. This accurately records the effect of the transit and gives Asset Managers the data to ensure maintenance of their assets at the required standard.

 

Special Considerations for Heavy Haulage Projects

 

When Overdimensional cargo arrives from overseas, ODLS has the equipment and knowhow to manage the process of setting into Laydown at the Wharf until the Heavy Haulage Transport is scheduled. While this comes at an additional cost, this enables timely delivery to site, avoiding liquidated damages for late delivery. This also allows for Third Party bookings to be made in advance, reducing the impact of their availability and booking windows

 

Cost-Optimisation Strategies for Heavy Haulage

 

ODLS is always looking for ways to optimise costs for our valued Customers. Whether choosing the most appropriate equipment, keeping up to date with the latest technology, or drawing on our wealth of experience to ensure safety and visibility of overall costs, ODLS is a market leader in prioritising compliance to the many facets of Heavy Haulage operation in Australia.

At ODLS we believe planning and communication are key, while our experience ensures the many variables can be effectively managed for the most economical solution.

Reach out to ODLS for a detailed chat about your heavy haulage requirements. We focus on creating effective, personalised transport solutions which safely minimise your budget.

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