Company has over 100 years of expertise in fuel transportation
An exclusive feature by MOTORINDIA
Heil Trailer International, Co. is a leading global provider of engineered tank and specialty trailers for a diverse range of end markets including oil and gas and infrastructure. The company products include liquid, dry-bulk and specialty trailers.
Founded in 1901, Heil Trailer is headquartered in Cleveland, Tennessee, with manufacturing facilities in Athens, Tennessee; Gatesville, Texas; and Rhome, Texas, and international manufacturing facilities in Thailand and Argentina, which address the emerging markets of Asia and Latin America. In addition, it has sales offices in Brazil and Australia and a service center in Louisville, Kentucky.
Heil Trailer focuses on key aspects of both design and manufacture of the tank trailers which result in enhanced operator safety, increased revenue hauling capabilities, and reduced maintenance requirements. It also keeps developing innovative products and services, building relationships and providing the best ‘after-the-sale’ service for the transportation industry – the principles that Julius P. Heil had embraced when he founded the company in 1901.
Heil Trailer International has its financially stable and enduring presence in the trailer industry, whose founding principles are very much evident in the work ethics of all Heil Trailer associates around the world. These principles are reflected in the company’s brand message: ‘Going the Extra Mile for You!’
In an exclusive interview to Motorindia, Mr. Jeffrey M. Edwards, Director of Export Sales & Marketing, Heil Trailer Asia Ltd., explains how the company’s products could assuredly raise the standard of the Indian transportation sector in general and the oil transportation sector in particular.
Excerpts from the interview:
Question: Heil Trailer has been keenly following the developments in the Indian petroleum sector for quite some time now. What are your current plans for the Indian market?
Answer: We have crossed a major hurdle in terms of the Petroleum Act having been revised to allow for high-capacity semi-trailers, and importantly, those manufactured in aluminium. This occurred late last year and time has to be devoted to the ‘educational’ process in-terms of communicating the enormous benefits that these changes would bring to the transport community, especially the petroleum transport sector.
Currently, we are ready and immediately available to provide this kind of tanks and trailers to the Indian market, with the knowledge and expertise gained from over 100 years of continuous service to fuel transporters globally.
Q. How do you compare the technology used in India for transportation of petroleum products with that in other developed countries?
A. Now that the Petroleum Act has been amended to allow for high-capacity tankers, including those built with aluminium, India now has an excellent opportunity to dramatically transform downstream logistics and distribution for fuel deliveries countrywide.
While there will remain many sites where a smaller rigid truck will need to be utilized, there are also a number of highway sites, commercial locations and fuels bridging opportunities for higher capacity semi-trailers, of up to 40,000 litres, when using light-weight aluminium.
These higher capacity semi-trailers, when coupled with the new and efficient prime movers that have appeared on the transport scene, can in many cases reduce diesel consumption by as much as 10 per cent when compared to using mild steel semi-trailers, which legally can only be built to 36,000 litres given the weight differential between aluminium and mild steel. The lifespan of aluminium tanks and semi-trailers is also longer than similar mild steel models and their resale value over time is substantially more as well, in view of the fact that aluminium does not corrode. Aluminium equipment should also play a far greater role in aviation refuelling since aluminium barrels do not require lining, which deteriorates over time causing fuel contamination.
Q. Do you think the revision of the Indian Petroleum Act would drive India’s growth to position it in line with other developed markets?
A. All credit should be given to the Ministry of Oil and Natural Gas for the changes made to the Act. Now the task ahead is to educate the transport community on the very real benefits of semi-trailers such as ours.
The revision of the Act last December was a significant step in terms of bringing India ‘up to speed’ in fuel transport and distribution. However, it remains to be seen how the country’s oil companies and their haulers will embrace the changes to the Act that allow for high-capacity semi-trailers. The cost will of course be higher, but the returns are far greater than remaining with inefficient, low-capacity mild steel rigid tankers.
Q. Indian Oil Corporation and Oil Tanking GmbH had set up a consortium in 1997 for liquid bulk storage. Do you have any similar plans for the Indian market?
A. The scenarios are very different as we would be selling primarily to privately-owned contractors to the major oil companies, and not the oil companies direct. Therefore, it would be very unlikely that a party such as IOC would be interested in setting up a joint venture for tank and trailer manufacturing. A more likely scenario would be partnering with a company already engaged in manufacturing transport equipment that has a ‘feel’ for our industry.
Q. Could you give us an update on the recent management-level changes at Heil Trailer? How would it help the company move forward?
A. American Industrial Partners’ (AIP) recent purchase of our company is in keeping with its position as an operationally oriented middle-market private equity firm that makes control investments in North American-based industrial businesses serving domestic and global markets. AIP has deep roots in the industrial economy and has been active in private equity investment since 1989. To date, the firm has completed over 30 transactions and is currently managing more than $1.1 billion in equity capital.
“AIP is very excited about the purchase of Heil Trailer”, said Mr. Danny Davis of American Industrial Partners. “The company’s (Heil Trailer) brand is one of the most respected in the industry, and it is well positioned for growth both in North America and globally. We believe that AIP will be a value-added partner for the company (Heil Trailer) going forward.”
Q. Would Heil Trailer contemplate tie-up with an Indian company in the near future?
A. It is of course essential to have a local partner to advance our ‘footprint’ in India. We have been talking to a number of companies over the past decade, and we would hope to be able to take some decisions in this regard soon.
For the time being, we may look at partnerships for assembly purposes only, until such time as market acceptance and penetration warrant actual start-up of a dedicated factory. We strongly believe that this will happen sooner than later.