Following political turmoil and a halt in mobile broadband connectivity, the absence of a transportation policy brought the supply chain ecosystem to a halt.
Several workarounds emerged, with Careem introducing manual ride booking by creating three helplines for its Karachi user base. Meanwhile, transport management solutions like as Trukkr and Truck It, which raised $6.4 million and $13 million respectively in Q1 2023, saw their investor confidence shattered.
“Startups entering the logistics business are an opportunity, and we are working closely with these startups for the hardware components,” said Harris Jamali, CEO of TPL Trakker, a 24-year-old Internet of Things (IoT) company with a market capitalization of $6 million.
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According to him, there are between 200,000 and 300,000 trucks in Pakistan, with transport management system start-ups requiring clients to install a dashboard. This helps with billing, paperwork, and minimising empty truck movements to improve logistical efficiency.
“Eventually, it will bring pricing transparency,” Jamali said. “Trucks from all over Pakistan arrive empty in reverse mode in Lahore.” Without a dashboard, you have no visibility, and large corporations will not hire you. Every carrier knows that if you are registered on the customer’s system, you will get a route. The fleet is not ours, but we invest in devices, and TPLT has a 40-45% market share in the tracking sector.”
“A smooth supply chain can significantly reduce costs,” Jamali remarked. “The warehouse system is inoperable. There is no transport policy in place. There is concern that pricing will be overregulated. Transport policy would provide large macro perspectives, such as ports and dry ports. The transport policy will energise SMEs, and roads will be renovated.”
He argues that TPL Trakker has assessed more roads than the government, emphasising the importance of a transport policy that recognises road inefficiencies and mandates route planning tools.
“If there are no proper roads, even if you bring Mercedes and Volvo trucks, they will fall apart,” Jamali explained. “Without proper road infrastructure, the industry cannot be upgraded.” Capital will only divert where it can earn a profit. Because the industry’s returns are low, money is being directed elsewhere, such as into real estate, where there are returns. “Industrial activity has slowed significantly.”
The industrial Internet of Things (IIoT) and industrial solutions have a wide range of applications, with businesses interested in finding solutions as fuel prices rise, driving businesses to discover ways to cut fuel use and achieve higher levels of efficiency.
