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Home FEATURED

Modernizing the Fleet: Challenges for Small and Medium-Sized Ground Transportation Enterprises in Mexico

The aging of fleets and unequal access to financing place Mexican ground transportation at a crossroads.

T21 Media by T21 Media
28 November, 2024
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The aging of transport fleets in Mexico is becoming an urgent challenge for the sustainability and competitiveness of the sector , with 59.5% of tractor-trailers being over 15 years old. The problem extends beyond transport, directly impacting the environment, according to Daniel Ortiz, co-founder of TraPaPe . 

Furthermore, this situation affects independent transporters , known as “truck men”, whose traditional figure, according to Ortiz, is disappearing due to the difficulties in modernizing their units and adapting to the demands of an increasingly competitive market. 

In an interview with T21, Ortiz explained that the current conditions of transport have marginalized these small operators. 

“Many of them no longer exist as such, or have migrated to having five to ten trucks. If they do not update their fleets, they are destined to disappear from the market,” said the co-founder of TraPaPe. 

Daniel Ortiz, Co-founder of TraPaPe

According to Ortiz, the business model of these transporters has been to maintain the vehicles until they stop working , which prevents them from growing or competing in a market that is moving towards modernization. 

He also commented that access to financing is the main obstacle for this segment , which has historically been excluded from traditional credit systems. 

“Large companies have understood that transport is a financial business, but small operators do not have access to these opportunities due to criteria that do not reflect their operational capacity,” Ortiz explained. 

For him, this exclusion perpetuates informality and the lack of competitiveness in the sector. 

The lack of renewal of units also has environmental and social implications. Older trucks generate more polluting emissions, affecting air quality and public health. 

In addition, operating obsolete vehicles entails greater risks for transporters and road users. Ortiz stressed that modernizing fleets not only reduces greenhouse gas emissions, but also improves the quality of life of operators by offering safer and more efficient vehicles. 

Although the problem affects the entire sector, the solution seems more complex for small transporters . Ortiz indicated that in Mexico there is no accessible financing model for these actors, which limits the updating of fleets. 

However, he added that it is essential that this segment finds ways to be included in a more formal system. 

“If they don’t update themselves, they will continue to be pushed out of the market,” he warned. 

The reality of Mexican land transport is not only a problem of competitiveness, but also of environmental and economic impact. 

With 86.2% of goods moving by road, fleet obsolescence represents a large-scale challenge that requires comprehensive and urgent solutions, as Ortiz points out. 

In the words of Isabel Studer, president of global sustainability, quoted by Ortiz, “Mexico urgently needs innovative financing to modernize its fleet.”

Without a structural change in the model of access to credit and the modernization of the units, the country risks not only the growth of the sector, but also its ability to meet international sustainability standards, he added. 

Along these lines, Daniel Ortiz commented that TraPaPe is offering a solution that not only renews trucks.

“We help transporters to have a better quality of life and contribute to a more competitive and sustainable industry,” Ortiz said.

Comment and follow us on X: @karinaquintero / @GrupoT21

Tags: AGE OF THE FLEETFleet RenewalMAN-TRUCKTRAPAPETRUCK FINANCING

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