(3) 
LI J»0 SO 

A STUDY OF VEHICLE FLEET MANAGEMENT IN 

GOVERNMENT INSTITUIONS IN SRI LANKA 

P. A. Ananda Weerawansa 

(06/ 8882) 

LIBRARY 
tf>!VERSITY OF MORATUWA. SRI IABIU 

MORATUWA 

Thesis submitted in partial fulfillment of the requirement for the degree Master of 

Transportation 

Department of Civil Engineering r 1 / 

University of Moratuwa 
Sri Lanka 

" T W 

9/863 

(rO t* C8-
y 

University of Moratuwa 

94863 



DECLARATION 

"I declare that this is my own work and this thesis/dissertation does not incorporate without 

acknowledgement any material previously submitted for a Degree or Diploma in any 

University or other institute of higher learning and to the best of my knowledge and belief it 

does not contain any material previously published or written by another person except 

where the acknowledgement is made in the text" 

"I have supervised and accepted this thesis for the submission of the degree." 

Prof Amal S. Kumarage 
Head of the Department 
Transport and Logistics Management 
Faculty of Engineering 
University of Moratuwa 

P.A. Ananda Weerawansa 

Date: 



Abstract 

There are 322 government institutions under Sri Lankan government. More than 95% out of 

them have their own vehicle fleet. In their institutions, the vehicle fleets has been managed by 

one of commissioners, by a director or a transport officer appointed by the head of the 

department. 

Though there are large vehicle fleets belong to the government institutions, there are no 

proper fleet management policies required in an efficient fleet management. There are about 

60% - 70% of vehicles aged over lOyears or 300,000km are used in active vehicle fleet 

without any proper replacement policy. This causes unnecessary repair costs and low 

reliability which leads to poor transport supply against demand. 

Due to lack of proper preventive maintenance policies, vehicle repair and maintenance costs 

as well as downtime costs are increased. In addition; frequent occurrence of unnecessary 

repairs, low fleet reliability and low usage will prevail. 

In recent times, the government has engaged in large scale development programs 

implemented through government institutions. This has increased the transport demand 

significantly. In order to fulfill this higher transport demand a proper vehicle fleet 

replacement policy, a timely preventive maintenance schedule, proper vehicle fleet data 

recording system and regular use of information technology should be applied to reduce the 

repairs and maintenance cost excessive fuel cost and the downtime. 

Further to above, absence of a proper vehicle fleet replacement policy, a proper preventive 

maintenance plan, accurate data recording system and lack of staff training facilities may 

cause a deficient and poor vehicle fleet management in government institutions. If immediate 

solutions are not found for above deficiencies in fleet management, the entire government 

fleet management will be in jeopardy. 



ACKNOWLEDGEMENT 

I express my deepest gratitude to Professor Amal S. Kumarage; Head of the Department of 

Logistics and Transport, University of Moratuwa for guidance, valuable suggestions and put 

me to correct path to make this thesis successful. 

I would like to extend my special thanks to Professor J.M.S.J.Bandara Professor of Civil 

Engineering, University of Moratuwa, Dr Wasantha Kumara; Course Coordinator of M/Eng 

and MSC in Transportation and the academic and non-academic staff of the Department of 

Civil Engineering for their continuous support during the period of my research. 

I'm grateful to the Department of Agrarian Development for sponsoring me for this course 

and granting me leave. 

Finally, I wish to express my sincere thanks to my loving wife Jenita for sharing all my pains 

and joys, and my ever loving son Ruchira and my loving brother Dr Gamini Palihawadana 

for valuable courage and support given to me all the times. This thesis is dedicated especially 

to my beloved parents. 



Abbreviation 

AMW - Associated Motor Ways 

CC - Cubic capacity 

CEYPETCO - Ceylon Petroleum Cooperation 

CIF - Cost Insurance Freight 

DIMO - Diesel and Motor Engineering 

EFI - Electronic Fuel Injection 

IOC - Indian Oil Company 

NPA - National procurement agency 

PM - Particular matter 

SUV - Sport utility vehicle 

TEC - Technical Evaluation Committee 

UNO - United Nations Organization 

UML - United Motors Lanka 

VOC - Vehicle Operating Cost 



Table of Contents 

Declaration i 
Abstract ii 
Acknowledgement iii 

Abbreviation iv 
Table of content v 
List of Tables : viii 
List of figures vii 

Chapter 1 VEHICLE FLEET MANAGEMENT IN GOVERNMENT INSTITUTIONS 1 

1.0 Introduction 1 

1.1 Background 2 

1.2 The Objective and the scope of the study 4 

1.3 Methodology 5 

1.4 Vehicle fleet size 7 

1.5 Type of Vehicles 8 

1.6 Staffing 10 

1.7 Recruitment of Drivers 11 

1.8 Diagnosis of repairs 11 

1.9 Out-sourcing of Repair and Maintenance 11 

1.10 Costing and Budgeting 12 

1.11 Engine capacities and Different makes 12 

1.12 Fleet Fuelling Policy 13 

1.13 Training 13 

1.14 Vehicle Assignment 13 

1.15 Prices and Availability of Parts and Labour 13 

1.16 Documents in Government Institute use for Fleet Management 17 

1.16.1 Certificate of Registration of Motor Vehicle 17 

1.16.2 Running Chart 17 



1.16.3 Vehicle Log book 17 

1.16.4 Vehicle Inventory Management System 17 

Chapter 2 LITERATURE REVIEW . 18 

2.1 Cost Verses Age 18 

2.2 Downtime Verses Age 18 

2.3 New Vehicle Purchasing Restrictions 19 

2.4 Fleet Vehicle Purchasing Process is Competition but Vehicle Selecting Criteria could be 
improved 21 

2.5 Fleet Size 22 

2.6 In South African Government; a proper fleet management has proven Cost Reduction...22 

2.7 Fuel Economy Vs Age 23 

2.8 Major Repair Cost 25 

2.9 Repair Cost and Age 25 

2.10 Old Age Vehicles Affect the Air Pollution 26 

2.11 Government Vehicle Purchasing and Repairs 29 

Chapter 3 DATA ON VEHICLE FLEET MANAGEMENT IN GOVERNMENT 
INSTITUTES 31 

3.1 Sources of Data 33 

3.2 Vehicle Fleet Survey 34 

3.3 Age 34 

3.4 Annual Usage 34 

3.5 Fuel Consumption 34 

3.6 Repair cost 35 

3.7 Downtime 37 

3.8 Vehicle Replacement 38 

3.9 Preventive Maintenance Data 38 

Chapter 4 ANALYSIS OF VEHICLE FLEET MANAGEMENT IN GOVERNMENT 
INSTITUIONS 39 

4.1 Fleet Classification 40 

4.2 Downtime vs. Age 41 

v i 



4.3 Annual Usage vs. Age 42 

4.4 Annual major repair cost vs. Age 44 

4.5 Fuel Consumption vs. Age 45 

4.6 Average Downtime per vehicle 46 

4.7 Maintenance Cost/Km per vehicle 47 

4.8 Average Annual Major Repair Cost 48 

4.9 Average Annual Usage of Vehicles 49 

4.10 Mobile Air Emission Standard 50 

4.11 Use proper data base for Storage of necessary vehicle data 50 

4.12 Comparison of Variable Cost 50 

Chapter 5 CONCLUSION 52 

Chapter 06 RECOMMENDATION 57 

Reference 59 

Appendix 1 60 

Vehicle Log book 60 

Appendix II 65 

Maintenance Record Card 67 

Manufacturers recommended maintenance schedule 68 

APPENDIX III 70 

Value of a brand new L200 4D56 double cab in year 1995 70 

Value of the engine of L200 4D56 in 2008 71 

APPENDIX IV 72 

Government fuel order 72 

APPENDIX V 73 

Questionnaire 73 

APPENDIX VI 82 

Summary of Data Collection 82 

v i i 



List of Tables 

Table 1.1 Vehicle fleet size 7 
Table 2.1 Comparison of vehicle price (Diesel Vs. Petrol) 20 
Table 2.2 Average Emission Factors of vehicles 27 
Table 2.3 Estimation of CO2 Emission 27 
Table 2.4 Comparison of specification for Sulphur in diesel fuel 28 
Table 3.1 Condition and Performance ratings of the Vehicles below 5 years 32 
Table 4.1 Average Downtime 46 
Table 4.2 Average Annual Major Repair Cost per vehicle 48 
Table 4.3 Comparison of Variable cost of Double cabs (New & Old) 51 
Table 6.1 Vehicle Replacement Criteria 58 

viii 



List of Figures 

Figure 1.1 Grounded Pajero due to no proper inventory management system 3 
Figure 1.2 Grounded car due to no proper inventory management system 4 
Figure 1.3 Methodology 5 
Figure 1.4 Fleet size 8 
Figure 1.5 Staffing 10 
Figure 1.6 Active Truck Fleet 15-20 years old 14 
Figure 1.7 Double cab 0-5 years old 15 
Figure 1.8 Grounded car 15 
Figure 1.9 Grounded vehicles 16 
Figure 2.1 Major repairs which affect downtime 19 
Figure 2.2 Toyota Land Cruiser with high fuel consumption and VOC 21 
Figure 2.3 Carburettor fuel system 24 
Figure 2.4 EFI System 24 
Figure 2.5 Inline pumps 24 
Figure 2.6 Rotary type pumps 24 
Figure 2.7 Common Rail Type 25 
Figure 2.8Air Pollution 26 
Figure 2.9 20 Year old cars - still in active vehicle fleet 29 
Figure 2.10 25 Year old Jeep - still in active vehicle fleet 30 
Figure 2.11 45 Year old lorry - still in active vehicle fleet 30 
Figure 3.1 Fuel efficiency of double cabs 35 
Figure 3.2 Average cost per Km for Maintenance of Cars 36 
Figure 3.3 15 years of age Nissan Patrol jeep undergoing major repairs 36 
Figure 3.4 15 years of age vehicle undergoing major repairs 37 
Figure 4.1 Fleet Classification 40 
Figure 4.2 Downtime vs. Age 41 
Figure 4.3 Annual Usage vs. Age 42 
Figure 4.4 Annual major repair cost vs. Age 44 
Figure 4.5 Fuel Consumption vs. Age 45 
Figure 4.6 Average Downtime per vehicle 46 
Figure 4.7 Maintenance Cost/Km per vehicle 47 
Figure 4.8 Average Annual Major Repair Cost 48 
Figure 4.9 Average Annual Major Usage of vehicles 49 
Figure 4.10 Comparison of Variable cost of Double cabs 

(Old & New) in year 2008 51 

ix 



Chapter 1 VEHICLE FLEET M A N A G E M E N T IN G O V E R N M E N T 

INSTITUTIONS 

1.0 Introduction 

The government of Sri Lanka has a number of ministries, departments, statutory bodies and 

semi government institutions. The development and administration programs of these 

institutes are undertaken by government departments and other institutes. The mobility is 

playing a vital role in functioning of these institutes effectively. To facilitate for the mobility, 

central government has provided vehicle fleets for necessary institutes. 95% of government 

institutions have their own motor vehicle fleets and the rest of other institutes have 

outsourced for their transportation. 

The fleet consistence pattern of the government institutions vary according to their needs and 

wants relating to their services. There are various vehicle types in these fleets and most of 

them have cars, jeeps, double cabs and lorries etc, while a few have motorcycles, vans and 

buses. 99% of these fleets are consisted of gasoline powered cars where as jeeps, double cabs 

and lorries powered by diesel. In each and every year, government allocates approximately 

4.5% of its annual budget on fleet management according to the finance report published by 

the general treasury. As the state income has declined since the last decade, government has 

decided to cut down the expenditure for purchasing new vehicles. Especially the allocated 

budget does not match with the existing prices of new vehicles. When the government 

vehicle fleets are considered; 60% - 70% are old. This means that these old aged vehicles 

have exceeded the active fleet age. They are ageing up to 20 years. Due to this situation, 

maintenance, repair and operation costs of them have gone up remarkably. The main reason 

for this is that the old vehicles have to be repaired very often. The downtimes of them are 

very high and they take more time to travel. They are less fuel efficient as well. On the other 

hand, the environmental pollution caused by the emissions of these vehicles is very high. 

Further, these old vehicles cause incomplete combustion. Therefore, they emit more CO 

(Carbon Monoxide) to the atmosphere. CO is a greenhouse gas that increases the global 

warming and creates health problems to the society. 

Though the government institutions have vehicle fleets from 1-20 years old or even more, the 

average age of the active and efficient fleet in Sri Lanka is 6.2 years according to Dr 

Jayaweera's research paper on "Vehicle inspection and maintenance policies and program". 
1 



The reason that the government institutions have to keep aging vehicle fleets is due to an 

investment constraint for the replacement of the vehicle fleet. It is obvious that an efficient 

vehicle fleet management system is very important to minimize maintenance and operation 

costs. An effective fleet management program should include policies and procedures on 

acquisition, replacement, disposal, repair and maintenance of vehicles, record keeping and 

labor management. 

Though the general treasury deducts allocation of money on purchasing of new vehicles for 

the government institutions, the cost that is born for repairs of these old vehicles are 

marginally high in each year. As a solution to minimize the maintenance cost, it is being 

observed that over 50% of old aged vehicles are not worth while in the long run due to their 

unreliability even after their rehabilitation. Therefore, it is necessary to provide a proper 

vehicle replacement program and efficient fleet management system to the government 

institutions for more productive logistic services. 

Problem of the Study 

Lack of proper vehicle fleet management policies result in inefficient management of the 

government vehicle fleets. 

1.1 Background 

There are 322 government institutes island wide according to the statics of the General 

Treasury of Sri Lanka. Ninety five percent of these institutions have a motor vehicle fleet and 

it appears as this is the second capital asset of these institutions. When comparing public 

sector with the private sector in Sri Lanka, the private sector utilizes their fleet for business 

purposes while government utilizes the fleet to cater services for the general public. 

The way in which the vehicle fleets of private and public sector are managed has some 

differences. For an example, the Seylan Bank of Sri Lanka has applied a proper maintenance 

schedule and also they do preventive and routing maintenance in a timely manner such as 

changing oil after every 5000 km and a periodical maintenance after every 10000 km, 20000 

km and 80000 km intervals. Even though the manufacture 's maintenance standard is to 

change oil after every 5000 km interval, in general, the government institutions undertake 

routine maintenance in between 5000 - 10000 km. In addition to that, the private sector keeps 

the maintenance records in their electronic data bases while the government institutions do 

2 



the same thing manually. As a result, most of past maintenance records of the vehicle fleets 

are unavailable in the public sector and the important data like cost, km reading and fuel 

consumption are not recorded properly. Further, the cost per km is calculated by the private 

sector for each vehicle. If the cost increases than the recommended rate, they find the route 

cause for this problem and take some corrective action in order to prevent its recurrence. 

When considering the private sector, they replace the vehicles after every 150,000 km run or 

7 years of age which ever occurs first. The government sector institutions use their vehicles 

even if they exceed 500000 km or even 20 years or more. Therefore, having a proper vehicle 

maintenance data base, a routine fleet replacement policy and a proper preventive 

maintenance schedule will result in reducing vehicle operational and maintenance cost in the 

government sector thus reducing the annual budgets of them. 

Figure 1.1: Grounded Pajero due to no proper inventory management system 
(Source: Ministry of Agriculture) 

Above picture shows one of the Mitsubishi Pajero grounded in a vehicle yard after an 

accident; for the last lOyears. It has been neglected due to no proper inventory management 

and no proper replacement policy. These cause to increase inefficiency of the government 

vehicle fleet management. Such cases could be seen very often in government vehicle fleets. 



Figure 1.2: Grounded car due to no proper inventory management system 
(Source: Ministry of Agriculture) 

1.2 The Objective and the scope of the study 

The objective of the research is to identify the behavior of maintenance and repair cost, 

downtime, usage and the fuel cost of the government motor vehicle fleet against the age and 

to identify possible improvement methods to increase the efficiency of fleet management. 

And the scope of the research is to review of literature on efficiency of vehicle fleet 

management in Sri Lanka and other countries. The data was collected from the 20 

government institutions and their head offices located in Colombo due to the reason that there 

are large numbers of vehicles being used by the head offices compared to their local 

branches. Especially cars, jeeps, double cabs, vans, lorries and mini buses were focused in the 

study. The scope of the study was limited to the vehicle fleet that provides services to the 

departments and to the public. Vehicles such as tractors, ambulances or buses were not taken 

into the study. The public transport sector was excluded because of the fee charged from the 

public. 

4 



1.3 Methodology 

This section intends to describe the approach taken on rationalizing the research project. This 

chapter would explain the theoretical framework, on how the problems and solutions are 

identified; 

Figure 1.3: Methodology 

5 



One of the assistants and the researcher visited all the 20 institutes to collect the data for this 

thesis. They met heads of transport divisions and discussed about the existing situation of 

their fleets, problems they face in fleet managemenj, maintenance costs, spare parts costs, 

their policies and procedures. Then the vehicle operators were interviewed and operational 

data were collected. With the support of questionnaire, the data such as downtime, major 

repair costs, utilization, and fuel consumption were collected. By reviewing past records, 

vehicle ages, past repair costs and maintenance costs were found. By analysis we may be able 

to find out causes for higher fleet maintenance cost and the result shall be used to develop a 

vehicle fleet management strategy. 

Twenty Government institutions which have their own vehicle fleets have been selected. The 

transport officers who are the heads of the transport divisions in these institutions and their 

staff members were interviewed on vehicle acquisition, maintenance, repair cost, downtime, 

fleet size and availability etc. Following methods were used for data collection. 

1) Interview survey 
2) Questionnaire survey 
3) Review of past records 
4) Literature review 

Using excel sheets, plotting graphs etc. found the cost behavior and identifying the 

relationship among the variables that are effected to the vehicle fleet management efficiency 

and developing vehicle fleet management strategy. Ex: Vehicle replacement policy, 

preventive maintenance schedule, vehicle inventory management, fuel management and labor 

management etc. 



1.4 Veh ic l e f l ee t s ize 

Diffe ren t g o v e r n m e n t d e p a r t m e n t s h a v e d i f f e r e n t f l ee t s izes . In t h i s s tudy ac tua l da t a o f 

sample o f 2 0 ins t i tu t ions h a s b e e n co l l ec t ed w i t h t h e h e l p o f a q u e s t i o n n a i r e a s m e n t i o n e d 

below. 

T a b l e 1.1: V e h i c l e f l ee t s i z e s 

Ins t i tu te N a m e F l e e t S i z e 

Ministry of Petroleum and Resource Development 13 

Ministry of Land and Land Development 26 

Ministry of Irrigation and Water Management 35 

Ministry of Labor 42 

Authority of Samurdhi 44 

Department of Archaeology 34 

Ministry of Provincial Council and Local Government 40 

Ministry of Public Administrat ion and Home Affa i rs 61 

Agriculture Insurance Board 62 

Sri Lanka Cus toms 64 

Department of Inland Revenue 68 

Department of Wild Life 96 

Department of Education 94 

Postal Department 98 

Department of Agrarian Development 113 

Forest Department 180 

Survey Department 196 

Peoples Bank 201 

Presidents Secretariat 206 

Department of Agriculture 280 

7 



Replacement vehicles may be purchased on a one for one basis but based on the financial 

constraints of the government. Purchasing of new vehicles is very rare. Fleet size should 

increase to match with the operational requirements of the institutional mission. But, year by 

year, the government fleet size is decreased due to written off old vehicles and addition of 

only a few new vehicles due to higher prices of new vehicles. 

1.5 Type of Vehicles 

According to questionnaire survey held for this study among the 20 institutions; it was 

reported that different types of vehicles are used to satisfy their operational needs. Total units 

of vehicles are 1933 in these 20 fleets. 

247 

125 
529 

. r ; . 
ji , . si 

k ' or • Cars 

• Jeeps 

Double cabs 

4 
• Lorries 
v Others 

Figure 1.4: Fleet Size 

8 



Fleet Consistence as follows: 

There are 529 cars which belong to different makes and models such as Toyota Corolla, 

Nissan Sunny, and Mazda Familia which fill about 2/3 rd of the fleet and which are dense 

among the other models such as Mercedes Bens S Class, E Class, C Class, Volvo S80, S60, 

BMW 5series, 7series, Jaguar X type and few cars of Indian and Korean brands added very 

recently. 

Among 555 units of Sports Utility Vehicle (SUV) Mitsubishi Pajero is one of the most 

popular models. As well Toyota Land Cruisers with an amazing engine power supports the 

fleets in a reasonable way. And Land Rover defenders which are made for off road purposes 

give a fullest contribution to the fleets as an individual performer as well as a backup vehicle. 

The newer members of the SUV fleet such as Mahindra Bolero and Scorpio come from India 

and Ssang Yong Musso and Kyron come from Korea also play a good role. 

Toyota Hilux, Nissan and Isuzus populate all most all the Double cab fleet of 477 units while 

recently added Mahindra and Tata fulfill the rest of the fleet. 

There are 125 units of Lorries consist of Hino, Benz, Nissan Diesel, Isuzu, Tata and Ashok 

Leyland as well as ERF Leyland from UK. 

Finally there are 247 of other units considered in the research which includes Passenger vans, 

Cargo Vans and Mini buses. Most common makes of these are Toyota Hiace, Nissan Urvan, 

Mitsubishi Delica and Isuzu Fargo. 

9 



1.6 Staffing 

There are various staffing levels in different institutions to match with the size of their 
vehicle fleets. In this study, the staffing levels taken into consideration are 1-6, and their 
duties are shown below; 

Record keeping 
Dispatching and purchasing 
Inventory management 
Costing 
Budgeting 
Labor management 
Repair and maintenance 

Typical organization chart of the vehicle fleet management division in a government 
institution. 

Figure 1.5 

10 



1.7 Recruitment of Drivers 

Normal procedure is recruitment of drivers from the available short list at the recruitment 

period. There are no selection criteria to check the technical knowledge or skills of the driver 

recruits when they are selected. If there is a valid driving license and they can take the vehicle 

on the road, they will be selected. 

1.8 Diagnosis of repairs 

If there is any fault in the vehicle its driver's responsibility to inform it to the transport 

officer. Then the transport officer forwards it to the technical officer to diagnose the fault. 

But only 20% of the government institutions have technical officers attached to transport 

sections. Rests of the institutions send their breakdown vehicles directly to the contracted 

garages for repairs. 

1.9 Out-sourcing of Repair and Maintenance 

At present there are no in house repair and maintenance facilities in any of the government 

institutions in Sri Lanka. All the vehicle repairs and maintenance works are been out sourced. 

According to government vehicle maintenance policies, repairs can be done via following 

vendors. 

1) Local Agents (for particular make of vehicle) 

2) Registered garages. 

Local Agent (Franchise Agents) 

Toyota Lanka Pvt. Ltd, United Motors Lanka PLC, Sathosa Motors PLC and Diesel and 

Motor Engineering PLC are some of the local agents for various vehicle makes in the world. 

• Toyota Lanka for Toyota vehicles 

• U.M.L. PLC for Mitsubishi vehicles 

• DIMO for Mercedes Benz and Tata vehicles 

• AMW PLC for Nissan vehicles 

11 



All the local agents use genuine parts for new vehicles. But sometimes local agent also uses 

reconditioned or used parts for vehicles beyond lOyears of age cause of lack of new parts for 

aged vehicles. It obvious that local agent 's prices are very high. Therefore 75% of 

government vehicle repairs and maintenance are done via registered garages. 

Registered garages 

National Procurement Agency (NPA) has a registry for motor vehicle repair vendors. NPA 

don't have any scientific criteria to select suitable garages. They publish a paper notice in 

national news papers; call for registration and register all the applicants. According to 

interview survey done with the transport officers there are 90% of garages which use non 

genuine parts for the repairs and repairs are very low standard as well. 

1.10 Costing and Budgeting 

In every 3rd quarter of the year the transport officers have to prepare a cost estimate for the 

major repairs (Capital Expenditure), Minor repairs (Recurrent expenditure) and fuel cost. 

These estimates are sent to the Treasury to get the approval for the budget of the upcoming 

year. But as it's usual, that less amount from the budget has been allocated than requested for 

the whole year. 

1.11 Engine capacities and Different makes 

Eighty five percent (85%) of the government fleets consist of Japanese vehicles and rest of 

them are Indian, Korean, British, German, American and Swedish vehicles. There is no 

standardization in fleet and therefore they mix with different makes, models and types. Eg: 

Toyota. Nissan, Mitsubishi, Isuzu, Daihatsu, Mazda, Tata, Mahindra, Benz, Land Rover, 

Volvo and Jeep etc. 

There are different classes of vehicles mixed among the fleets as sedans, dual purpose 

vehicles, SUV's and lorries. 

Engine Capacities as follows 

• Double cabs 2500cc - 2800cc 

• SUVs 2500cc - 4500cc 

• Cars 1300cc - 2500cc 

12 



• Lorries 4500cc - 6800cc 

• Vans 2500cc - 3800cc 

1.12 Fleet Fuelling Policy 

a) Use of gasoline for cars 

b) Use of diesel for Double cabs, SUVs, Jeeps, Vans and Lorries 

c) Refueling at IOC or CEYPETCO fuel stations (Registered at NPA) 

d) Use of fuel orders 

Fuel orders are used when the vehicles are refueled. This voucher is categorized as 

grneral231. It has triplicate; one for fuel station, one for accountant for payment and the rest 

for audits. A cash deposit is needed to be paid to the fuel depot before issuing a fuel order in 

each and every year. The orders can only be issued within the limits. 

1.13 Training 

It is a must that there should have continuous training for the transport staff and the drivers to 

improve vehicle fleet efficiency and cut down unnecessary cost. In Government institutions, 

sometimes there is some limited staff training available. But most of them are not related to 

vehicles fleet management. Driver training programmes also are held very rarely. 

1.14 Vehicle Assignment 

In according to circular NO 22/90, head of the departments and the similar class officers are 

eligible for private use of the government vehicles at that time. Accordingly, some of the 

vehicles are assigned to eligible officers and rests of the vehicles are assigned to the 

individual drivers. 

1.15 Prices and Availability of Parts and Labour 

It is difficult to bear the high prices of genuine spare parts and high labour charges at present. 

Prices of some parts are 100% higher than that of the time which vehicle was purchased. 

Labour charges are also rapidly increased. There are several factors influenced to the increase 

of spare part prices. Some of these price hikes are due to the depreciation of Sri Lankan rupee 

13 



against Yen, Euro, Dollar and the Indian Rupee. As well the uneven duties are charged by the 

government. It 's difficult to manage the fleet in good condition since prices are very high. 

Therefore, it causes to select not only qualified garages but unsuitable garages as well which 

become troublesome when vehicles are sent there for repairs. 

Figure 1.6: Active Truck Fleet 15-20 years old 
(Source: Dep. of Agrarian Development) 

Above picture is the truck fleet of Department of Agrarian Development. It consists of trucks 

which are older than 15 years of age. These cause to low fleet efficiency and high vehicle 

operating cost. The main reason to use such old trucks in active fleet is the lack of proper 

vehicle replacement policy. 

14 



Figure 1.7: Double Cab 0-5 years old 
(Source: Dep. of Agrarian Development) 

This is a brand n e w double cab pu rchased recent ly b y the D e p a r t m e n t o f Agra r i an 
Development. This ha s p roven h igh fue l e f f i c i ency , e f f ec t ive u sage and cost e f fec t iveness . 
This new vehicle has been cont r ibu t ing a lot to the veh ic le f leet . A n d direct ly suppor t to 
increase fleet m a n a g e m e n t e f f i c iency . 

Figure 1.8: Grounded Car 
(Source: Ministry of Public Administration & Home Affairs) 

15 



Figure 1.9 Grounded vehicles 
(Source: Ministry of Public Administration & Home Affairs) 

1.16 Documents in Government Institute use for Fleet Management 

1.16.1 Certificate of Registration of Motor Veh:cle 

This is like the birth cert if icate of vehic le . Th i s inc ludes the m a k e , mode l , co lor , eng ine 

capacity, seating capacity, weight , and fue l type , count ry o f or igin , regis t ra t ion n u m b e r and 

the first registration date. 

1.16.2 Running Chart 

This is like a book. It includes the vehic le regis t ra t ion n u m b e r , fue l t ank capac i ty , o d o m e t e r 

reading and other current details of the j o u r n e y and fue l ba l ance in the veh ic le etc. 

16 



This includes repairs and payment, service, replacement of the tires and battery changes. 

1.16.4 Vehicle Inventory Management System 

Vehicle inventory management is one of the most important factors in proper fleet 

management system. To improve fleet efficiency there should be proper inventory 

management system to keep important records of each and every vehicle in the fleet. 



Chapter 2 LITERATURE REVIEW 

It was obvious that there was no previous research carried out or no articles or papers 

published by anybody form Sri Lanka about vehicle fleet management in government 

institutions. Therefore it 's difficult to find out local literature about vehicle fleet management 

in government institutions in Sri Lanka. 

2.1 Cost Verses Age 

According to international literature it has been proven older vehicle having more 

probabilities to increase repair cost than younger generation. 

For example: In Europe vehicle aged 1-5 years had a 20 to 30percent likelihood of incurring 

repair cost in a year. The vehicle about 13 to 15 years had likelihood closer to 68percent . . . 

The Lowest Probabilities ranging form around 10 percent in their early years to around 50 

percent year age 14 [1] (Ellen M. Pint, Lisa Palled Colabella. et al. 2008.) 

2.2 Downtime Verses Age 

The older vehicle had a higher probability of experiencing one or more days of downtime per 

year. In Europe for example a new long vehicle had about a 40% likelihood of incurring 

downtime, where as 15 years old long vehicle likelihood was about 80%. That is an old 

vehicle with a high odometer reading tended to have more downtime than did a younger 

vehicle with a high odometer reading [2] 

18 



Figure 2.1: Major repairs which affect downtime 
(Source: Dep. of Agrarian Development & United Motors Lanka Ltd.) 

n u m m r f -

2.3 New Vehicle Purchasing Restrictions 

Government intuitions have several types of vehicles cars, jeeps, double cabs and Lorries etc. 

according to the sample survey data, 24% were petrol powered vehicles and others 76% 

vehicles were diesel powered because operation cost is low. In Sri Lanka the tax burden for 

diesel vehicles at the time of purchase is seen to be double that of the gasoline powered 

vehicles. There is a comparison of diesel and petrol vehicle price for Toyota model RAV4 [3] 

(Munisinghe Mohan. Kumarage A. et al. 2003.) showed total of CIF + Tax for petrol vehicle 

Rs 2,650,092 and same diesel vehicle CIF + Tax was Rs 3,900,000 [Price in 2001], The 

difference is Rs 1,249,908 between petrol and diesel vehicle. Therefore it 's difficult to 

purchase new vehicle to the government vehicle fleets. As a result aging vehicles were 

increased among institutional vehicle fleets. 

19 

o * o r o 
H O u O 



In Table 2.1 we show a comparison of the taxes levied on diesel and petrol cars, using the 

same Toyota model differ ing only by type of engine. The tax burdens for the diesel vehicle at 

the time of purchase is seen to be double that of the gasol ine-powered car. 

Table 2.1: Compar i son of vehicle prices (Diesel Vs. Petrol) 

Toyota model RAV4 

Gasoline 
C o s t i n Rs 

D i e s e l D i f f e r e n c e : d i e s e l l e s s 
G a s o l i n e 

Costs a t p u r c h a s e 
CIF 1800000 2200000 400000 

Import du ty 
Defense l e v y 
Excise du ty 
GST 
Stamp duty 
Total t a x 
Total CIF + t a x 
Tax[as p e r c e n t of 
Annual t a x e s 
R e g i s t r a t i o n 
Diesel t a x 
Luxury t a x 
Annual f u e l c o s t 
Km/year 

I Km/li tre 
1 L i t r e s / y e a r 
| P r i c e / l i t r e 
^Annual f u e l c o s t 

267000 
217000 
254400 
198721 
21380 
850092 

2650092 
t o t a l ] 32% 

3500 
10000 
50000 
0 
15000 
10 
1500 
50 
75000 

534000 
108511 
508800 
397400 

42800 
1700000 
3900000 

44% 

6500 
10000 
50000 

15000 
10 
1500 
2 1 . 5 
32250 

267000 
108489 
254400 
198679 

21420 
849908 

1249908 
12% 

3000 

0 
0 

0 
- 2 8 . 5 
-42750 

Note: Imported as reconditioned, three-year-old vehicles. Luxury tax decl ines by Rs 

10.000/year, reaching zero in the sixth year. Figures are tabulated for taxes and typical prices 

as of April 2001. 

20 



2.4 Fleet Vehicle Purchasing Process is Competition but Vehicle Selecting Criteria could 
be improved 

When all the government institutions purchase vehicles, they set the specification and go for 

competitive contract bids from vendors. But later a considerable amount of money that has to 

be paid for the repairs and maintenance. Therefore when preparing specifications for 

purchasing of vehicles it should be considered the estimated life cycle cost as well 

[4](JLARC of The Virginia General Assembly, 2004.). As a result of this method it can be 

selected most cost effective vehicles. 

When it was reviewing government institution's past records, big money expended as life 

cycle cost for SUVs. Example: Jeeps - The average fuel economy is published by the vehicle 

manufacturers for new vehicles and therefore expected fuel costs on the vehicle can be 

calculated based on current price of fuels (petrol or diesel) and the number of miles will be 

driven before it is replaced. Maintenance expenditure can be estimated based on 

recommended service intervals for the vehicles maintenance. The resale value of the vehicles 

may be estimated based on their expected depreciation. One automotive research company 

published expected life cycle costs for various vehicle models of the year 2003 within several 

different vehicle classes. This analysis based on a 96,000km replacement schedule. Per 

kilometer cost were based on following equation. 

Cost per Km = Total fuel cost + Total maintenance cost + Depreciation 
96,000km 

Figure 2.2: Toyota Land 
Cruiser with high fuel 
consumption and V O C 
(Source: Dep. of Agrarian 
Development) 

21 



2.5 Fleet Size 

Fleet size of government institutions are decided according to their mission. In this study the 

fleet sizes vary as 13 units to 280 units. If institutional f rame work and duties are high; fleet 

size is also high. According to local and international literature there are two factors involve 

to reduce fleet size. 

1) Underused vehicles 
2) Aging vehicles 

1) Underused vehicles 

Use of annual mileage is to determine which vehicles are underused. In most situations cars 

age lower than lOyears has been driven less than 17,600km per year should be evaluated 

against the minimum use criterion and be reassigned to areas in which they can be used 

more effectively or sold. Policy like that can reduce the fleet cost. [5] (Texas. 2003) 

2) Aging vehicles to be replaced 

New vehicles below 5 years age are more cost effectively than 10 year age vehicles. Same 

result is given comparing with 15 and 20 year age vehicles. If maintain according to 

manufactures service standard 150,000km can be driven without engine repairs irrespective 

of there make. But in order to manufacturers literature after 150,000km there is a probability 

to occur engine repairs and so on major component subject to repair such as gear box, 

differential, power steering system, break system, suspension system and electrical system. 

In reviewing past records a lot of money was expended for vehicles unnecessary repairs. 

2.6 In South African Government; A proper fleet management has proven Cost 
Reduction 

A project completed by Transaid within the Department of Health in North West Provinces, 

South Africa led to a reduction in the number of vehicles required by the department from 

2,300 to 1,000. This reduced fleet was able to support the same level of service delivery and 

delivered massive cost savings to the Provincial Department. The same project produced the 

following operational achievements: 

• 55% reduction in fleet size. 

22 



• 55% reduction in transport capital budget 
• 35% reduction in operational transport costs 
• 85% transport availability achieved 
• 75% vehicle utilization achieved 

[7] (http://www.transaid.org) 

To the achievement of this efficient fleet management has been implemented as follows 
1) Maintenance management 
2) Use new vehicles for operations 
3) Replacement of old vehicles 
4) Operation management 
5) Usage of ICT 

2.7 Fuel Economy V s A g e 

The automobile manufacture in worldwide use two types of fuel systems for gasoline 
vehicles as follows. 

1) Carburettor fuel system 
2) EF1 system (Electronic fuel injection) 

Carburettor System 

This system has carburettor which has fixed to the air cleaner and engine on inlet manifold. 

All action in petrol flow is controlled by two je ts and a floater. After 100,000 km or 3 years 

which occurs first; these parts should be changed. For the time being if the worn out parts are 

changed the fuel consumption will still be very high. It 's the nature of aging vehicles. 

The EFI system 

This system is for petrol vehicles which is the most developed and fuel economical. This is a 

fuel injection system which consisted of an electric fuel injection pump and pressure type 

injectors. These injectors should be cleaned in every 25,000 km. According to local and 

international literature fuel consumption is decreasing with age. 

23 

http://www.transaid.org


Figure 2.3 C a r b u r e t t o r fuel s y s t e m F i g u r e 2 .4 EFI S y s t e m 

In diesel vehicles the manufacturers are using several types of injection systems. There are 

three famous types in Sri Lanka as follows. 

1) Inline pumps 
2) Rotary type pumps 
3) Common Rail Type 

When we follow automobile technical data rotary type diesel pump. Fuel efficiency a per liter 

is better than inline pump. However the latest common rail diesel system is more fuel 

efficient. All types need periodical maintenance and as it ages fuel consumption increases 

automatically. 

Figure 2.5 Inline p u m p s F i g u r e 2 .6 R o t a r y ty pe p u m p s 

24 



F i g u r e 2 .7 C o m m o n Rail T y p e 

2.8 Major Repair Cost 

According to vehicle manufacturers ' literature; major repair cost defines as engine, gear box, 

differential, break, suspension and electrical repairs. In efficient fleet management process 

unnecessary major repair cost can be reduced. 

If the fleet managers or the transport officers implement a proper preventive maintenance 

schedule in timely manner; younger fleet of 0 - 5 years age in the institute will not need to 

incur any major repairs or major repair cost. If the institute has a fleet of 5-10 years age major 

repairs can be commenced. But preventive maintenance programs can reduce the percentage 

of the amount of repairs. 

2.9 Repair Cost and Age 

The age of the automobiles directly involve to increase repair cost. This is a big issue for the 

vehicles in the active vehicle fleet, but exceeded its useful life lOyears or 96.000K.in In the 

City and County of San Francisco government 's budget analyst as repair cost by age of 

vehicles as follows. [8] (San Francisco, n.d) 

According to this analysis: vehicles aged less than 10 years has a low repair cost than the 

i \kaxv VQ \eavs of aae. 

25 



2.10 Old Age Vehicles Affect the Air Pollution 

Leading transport categories in the world are road, air, rail and ships. The most important 
sources as they account for the majority of mobile source fuel consumption in the world 
(approximately 82% and 13% respectively.) The main engine technology use for taking 
power is internal combustion system. 

IC engine mainly use gasoline, diesel and natural gases as fuel. All diesel engines are 
compression ignited and gasoline fueled engines are spark ignited. There are two types IC 
engines; two strokes and four strokes. Technically four stroke engines are better than two 
strokes as its less pollutant are emitted in automobiles. 

Evaporation Emissions 
(TOG) 

Leaks (A/C, Ref.) 
HFC,PFC 

Exhaust Emissions 
C02/ CO, NOx, SOx, 

NMVOC 

Figure 2.8 

Particulate matter (PM) and (Pb) are emitted from the exhaust tip with other exhaust gases. 
The old and worn out engines emit un-burnt fuel with particulate matter (PM). These un-
burnt fuels are visible as white, blue or black smoke with invisible particles. This incomplete 
combustion is caused by old or worn out engines with low technologies. And as air pollutant 
may be defined as any substance released to the atmosphere that alerts the air 's natural 
composition and may result adverse effects to humans, animals, vegetation and materials. 

26 



Table 2.2: Average Emission Factors of vehicles 

Vehicle Category Fuel Emiss ion (g /km) Vehicle Category Fuel 

CO NOX NMVOC CH4 N2O PM 

Motorcycles 2 stroke Gasol ine 2 2 . 7 8 0 .03 9 .86 0 . 7 4 0 .002 0 .000 

Motorcycles 4 stroke Gasol ine 2 4 . 2 7 0 .1 6 1.74 0 .07 0 . 0 0 2 0 . 0 0 0 

Private Car Gasol ine 41 .32 2 .03 5 .45 0 .15 0 .005 0 . 0 0 0 

Private Car Diesel 1.78 0.91 0 .4 6 0.01 0 . 0 1 0 0 . 2 4 4 

Minibuses Diesel 2 .57 1.27 1.27 0 .03 0 .017 0 .887 

Buses Diesel 11.83 16.14 3 .02 0 .07 0 .03 3 .337 

Medium-duty trucks Diesel 5 .16 8 .59 3 .67 0 .09 0 .03 3 .475 

Heavy - duty trucks Diesel 6.41 13.79 3 .78 0 . 0 9 0 .03 3 .813 

Table 2.3: Estimation of C 0 2 Emissions 

Fuel Type Carbon Emiss ion Factor (tC/TJ) Fraction Oxid ized 

Gasoline 18.9 0 .99 

Diesel 20 .2 0 . 9 9 

Coal 25 .8 0 . 9 9 

Fuel Oil 21.1 0 . 9 9 

Av. Turbine Fuel/ Jet Kerosene 19.5 0 .99 

[9]( Sugathapala. A.G.T. n.d) 

27 



According to the Department of Motor traffic in Sri Lanka there is considerable no of vehicle 

fleet belong to the government institutions out of the whole active fleet in Sri Lanka. It is 

obvious that vehicle fleet that vehicle fleet maintenance was not properly done by 

government institutions and old vehicles had more polluted emission. They can badly effect 

the environment of Sri Lanka because 90% of government fleets use diesel as fuel. [10] 

(Jayaweera. 2001) 

Table 2.4 

Table 2 - C ompai ison of Specif icat ion for Sulfur in ) iese l Fuel ° oS b y we i 
ASEAX(l) 1998 1999 2000 2001 Future Plans 
Brunei 0 .25 0.25 0 .25 0 .25 
Cambodia 
Indonesia 0.5 0.5 0.5 
Laos 

Malaysia 0.5 0.5 0.3 
Mvanmar 0.5 0.5 0.5 
Philippines 0.5 0.5 0.5 0.2 
Smgapore 0.3 0.05 0.05 0 .05 
Thailand 0 .25 0.05 0 .05 0 .07 
Vietnam 0.5 0.5 0.5 
OTHER 
India 
Bangladesh 
China(3) 0 .2-1 .0 0 .2(m 2002) 
Pakistan (2) 1 0.5(in 2002) 
Sri Lauka 1.1 1.1 1.1 1.1 0.5 (in 2003) 

Source: ASEAN. Proceeding Regional Workshop on Fuel Qua ity and Alternative Fuels. Delhi. May 
2001:1) G. Balce. Overview of Regional Fuel Market and Fuel Qualm- Standards in: (2) S.M. Zaidi. 
Country Experience of Pakistan in improving fuel quality: (3) Yangsheng, Improving Fuel Quality in China 
O n e factor remain is that v e h i c l e i n s p e c t i o n s y s t e m h a s to b e i n c l u d e d e m i s s i o n test tak ing sul fur 
level of diesel and other fue l qual i fy . 

28 



Figure 2.9 

20 Year old cars - Still in active vehicle fleet. 
(Source: Dep. of Agrarian Development) 

Above picture shows cars purchased before 20years by the Department Of Agrarian 
Development. They are still in active fleet due to no proper replacement and purchasing 
policy in government f leet 's management system. 

2.11 Government Vehicle Purchasing and Repairs 

There are procurement guidelines which have been approved by the cabinet of ministers. 

When the government institutes do repairs or purchase vehicles procurement manual and 

guideline should be fol lowed. . . [1 l](Sri Lanka. 2006.) according to the procurement manual 

for vehicle repairs above RslOO, 000 sealed quotations has to be called and 7-14 days should 

be given to the bidders to submit quotations. Thereafter two committees are appointed, one to 

open the bids and the other for evaluation. 

Later these recommended offers go to tender boards for approval. For all these work it takes 

45 days approximately. Since old vehicles are getting major repairs so often the time period 

taken for tendering purpose should also be added to the down time. 



Figure 2.10 
25 Year old Jeep - still in active vehicle fleet. 

(Source: Dep. of Agrarian Development) 

Figure 2.11 
45 Year old lorry - still in active vehicle fleet. 

(Source: Dep. of Agrarian Development) 

30 



Chapter 3 DATA ON VEHICLE FLEET MANAGEMENT IN 

GOVERNMENT INSTITUTES 

There are 322 government institutions situated island wide according to the government 

treasury statistics. More than 95% of them have own vehicle fleets. Eighty five (85%) of the 

head offices of these 322 institutions are situated in Colombo. Therefore, Colombo was 

selected as the research area. Twenty out of these were taken as sample institutions. 

1) Ministry of Petroleum and Resource Development 

2) Ministry of Irrigation and Water Management 

3) Ministry of Labor 

4) Authority of Samurdhis 

5) Ministry of Land and Land Development 

6) Department of Archaeology 

7) Ministry of Provincial Council and Local Government 

8) Ministry of Public Administration and Home Affairs 

9) Agriculture Insurance Board 

10) Sri Lanka Customs 

11) Department of Inland Revenue 

12) Department of Wild Life 

13) Department of Education 

14) Postal Department 

15) Department of Agrarian Development 

16) Forest Department 

17) Survey Department 

18) Peoples Bank 

19) Presidents Secretariat 

20) Department of Agriculture 

All the 20 institutions have a transport section with employees according to their fleet size. 

The staff consists with 1-6 persons. Chief of the section is the Transport Officer. Their duties 

are to prepare vehicle log sheets, record keeping about fuel, repair, maintenance and 

31 



dispatching and labor management. All of the 20 institutions don't have transport data bases. 

There are log books, maintenance and repair files and running charts for keeping records. 

When we reviewed the transport files and records, we were able to collect data. A number of 

research activities were also done as a part of this study to collect data. These activities 

included interviews, file reviews and questionnaire surveys. 

1) Interviews 

Interviews were conducted with transport staff at all selected government institutions. 

And interviews were conducted with the institutional transport officers, motor vehicle 

dealers, fleet maintenance vendors, fleet administrators and vehicle drivers. The purposes 

of these interviews were to get information about how they manage their vehicle fleet. 

Table 3.1: Condition and Performance ratings of the Vehicles below 5 years 

Condition and Performance ratings of the Vehicles below 5 years 

Good Fair Poor 

Engine 92% 6% 1% 

Steering 89% 10% 1% 

Breaking 80% 16% 4% 

Transmission 84% 12% 4% 

Acceleration 75% 15% 10% 

Heating 90% 9% 1% 

Air Conditioner 79% 15% 6% 

Lights 92% 6% 2% 

32 



dispatching and labor management. All of the 20 institutions don't have transport data bases. 

There are log books, maintenance and repair files and running charts for keeping records. 

When we reviewed the transport files and records, we were able to collect data. A number of 

research activities were also done as a part of this study to collect data. These activities 

included interviews, file reviews and questionnaire surveys. 

1) Interviews 

Interviews were conducted with transport staff at all selected government institutions. 

And interviews were conducted with the institutional transport officers, motor vehicle 

dealers, fleet maintenance vendors, fleet administrators and vehicle drivers. The purposes 

of these interviews were to get information about how they manage their vehicle fleet. 

Table 3.1: Condition and Performance ratings of the Vehicles below 5 years 

Condition and Performance ratings of the Vehicles below 5 years 

Good Fair Poor 

Engine 92% 6% 1% 

Steering 89% 10% 1% 

Breaking 80% 16% 4% 

Transmission 84% 12% 4% 

Acceleration 75% 15% 10% 

Heating 90% 9% 1% 

Air Conditioner 79% 15% 6% 

Lights 92% 6% 2% 

32 



Fuel Economy 89% 15% 2% 

Body condition 82% 13% 5% 

Tires 80% 

17% 

3% 

Source: Interview Survey of Drivers 

2) Questionnaire Survey 

There were 15 questions included in these questionnaire to gather data on vehicle fleet 

management for which questions were designed according to four age categories as 0-5 

years, 5-10 years, 10-15 years and 15-20 years. All data regarding cost were collected 

under these categories. Survey team visited all 20 sample institutions and filled the data 

forms with the surveys of all transport officers and their staff. 

3) File and Document Reviews 

For collected cost data it has been reviewed vehicle log books, running harts, vehicle 

repairs and maintenance files, inventories and accounts. 

I 
3.1 Sources of Data 

An efficient vehicle fleet management system has vehicle maintenance data base and fleet 

management data base. But government institutes in Sri Lanka still use manual data recording 

systems. All 20 institutes in which I collected data have small unit for vehicle fleet 

management and it consists of one transport officer (in-charge) and 1 to 6 clerical staff for 

keeping records and office work such as vehicle inventory, Repair Log book, running charts, 

fuel records, costing & budgeting records, accident & maintenance records and labor 

management records. Since all the government institutes do not have proper data keeping 

systems, it was so difficult to collect data for all the sections in the questionnaire. 

33 



3.2 Vehicle Fleet Survey 

Due to lack of data bases in the transport section in the government institutions, the research 

team had to face a lot of difficulties. There were no opportunities to collect data from email 

or by using electronic questionnaires. Research team had to visit each of the 20 departments 

and institutions. They met every transport officer, transport clerk and drivers etc. and filled 

the questionnaire. It revealed past records and vehicle files, log books, fuel records, vehicle 

inventories, running charts and repair and maintenance records. 

3.3 Age 

The age of the vehicle has been calculated by subtracting vehicle's year of manufacture from 

year of the vehicle's study period (in year 2008). The manufacturing date of a vehicle has 

been taken from the vehicle registration book. Vehicles were categorized in to four class 

intervals according to their age such as 0-5, 5-10, 10-15 and 15-20. The main reason to 

categorize vehicles into class intervals is that number of vehicles in a sample is very large. 

3.4 Annual Usage 

The data on average annual usage (km traveled) per vehicle has been collected from the 

running chart of a vehicle where it includes data of a vehicle about the amount of km driven, 

the amount of fuel has been taken per journey basis. Some Odometers of government 

vehicles are not working properly as well as some reading shows erroneous figures. 

Therefore records in the running charts have been taken as average data. Further amount of 

km traveled differs according to the type of vehicles. As an example, a car has driven less km 

than a Jeep; a Double cab has driven less km than a Jeep. 

3.5 Fuel Consumption 

Fuel consumption depends not only on age but also it depends on many other factors, mainly 

the speed, road & traffic condition, type of the vehicle and mechanical condition etc influence 

on the fuel consumption of a vehicle. Though the two vehicles are in a same type, records 

34 



might show slightly different figures according to their brands. There are about 90% of actual 

data and remain is estimated since odometers of 193 vehicles out of 1933 considered were 

malfunctioning according to the questionnaire survey. Figure below shows the percentage of 

the availability of active odometers. 

3.6 Repair cost 

. The cost for repair and maintenance of vehicles increases with its age irrespective of type of 

vehicles. The reason is that at the very beginning (age 0-5), mostly it has to bear only the 

maintenance cost such as oil changing and greasing and servicing for every 5000km. Just 

after 5 years, in the government institutes, first rehabilitation is take place such as engines, 

gear box, suspensions overhauling. The second rehabilitation period of vehicles comes sooner 

than the first. That means the vehicle grown age needs to be repaired frequently therefore 

aged vehicles affect to increase of repair cost. Average cost per km for Maintenance of 

vehicles has been calculated by dividing average cost by number of average km traveled in 

year 2008. 

• Inacliveododmeter 

• Active odometer 

Figure 3.1: Active odometer percentage 

35 



6 

0 
0-5 5-10 10-15 15-20 

Age Category 

Figure 3.2: Average Cost Per km for maintenance of cars (Department of Agriculture) 

Figure 3.3: 15 years of age Nissan Patrol jeep undergoing major repairs 
(Source: Ministry of Public Administration & home affairs) 

36 



3.7 Downtime 

This includes number of days that a vehicle inoperative or down for any operation. In 

government sector vehicles, this happens because of vehicles have been parked at garages for 

repairs. Here, the average annual downtime has been calculated in days which were 
t 

expressed by the transport officers. The number of days differs according to the aging 

categories. Basically downtime increases with age. The main reason to have such a high 

downtime is that for the repairs which exceeds Rs. 100,000; institutes have to go for tender 

procedure according to NPA guidelines and it takes more than 21 days to complete the legal 

matters. Therefore time taken for tender procedure is also added to the downtime of a vehicle. 

Figure 3.4: 15 years of age vehicle undergoing major repairs 
(Source: Ministry of Foreign Affairs) 

Vehicles in above picture are older than 15 years of age and they are undergoing major 

repairs. These major repairs cause due to worn out engines, corroded body parts etc. take a lot 

of time. Therefore downtime of old vehicles is very high. 

37 



3.8 Vehicle Replacement 

There are 60-70% of old vehicles in government vehicle fleet due to lack of proper 

replacement policy. Very costly repairs occur frequently. Therefore the questionnaire has 

been designed to collect vehicle replacement data to identify their replacement policy. 

3.9 Preventive Maintenance Data 

Other than age of vehicles; a considerable amount of government vehicles were grounded for 

long period with due major repairs. These types of repairs occur due to non availability of 

proper maintenance program. Therefore it is needed to identify about maintenance data. The 

organizations which are having vehicle fleet management systems is been maintaining 

database. It can be used improve vehicle fleet maintenance efficiency. In the questionnaire 

survey included questions about maintenance; so as to collect maintenance data. 

38 



Chapter 4 ANALYSIS OF VEHICLE FLEET MANAGEMENT IN 

GOVERNMENT INSTITUIONS 

Since there were no data bases and all institutes use to keep records using manual system and 

important data was not recorded properly; actual average data was collected according to data 

collection. Firstly fleet was classified on vehicle type and age vise and then the collected data 

was analyzed as vehicle annual average downtime in year 2008 vs. age category, major repair 

cost in year 2008 vs. age category, average cost per km for maintenance, average annual 

usage in year 2008 vs. age category fuel consumption vs. aging category. The quantitative 

and qualitative data were to determine to prepare a vehicle replacement plan and a proper 

maintenance schedule to create good vehicle fleet management strategies. 

Main variables were considered to determine the plan to prepare a good fleet management 

plan. 

1) Downtime in days 
2) Annual usage in kilometers 
3) Annual repair cost 
4) Fuel consumption as Km/L 

39 



4.1 Fleet Classification 

There are 322 government institutions in the island. More than 95% of them have own 

vehicle fleets. In this study sample category was 20 institutions. And total numbers of 

vehicles were 1933 which consisted cars, jeeps (SUVs), double cabs. Lorries and others as 

vans and minibuses. 

250 -r 

200 

r 150 

o 100 
o 
2 

50 

0 - 5 5 -10 10-15 

Age Category (Years) 

15-20 

• Cars 

• Jeeps 

• Double Cabs 

• Lorries 

• others 

Fleet Figure 4.1: Fleet Classification 

Out of total fleet 137 units were cars below 5yeras, 84units were jeeps below 5years, 80 units 

were double cabs below 5years, 13 units were lorries and 58 unites were vans and mini buses 

fleets most popular typed of vehicles were jeeps (SUVs) secondly cars and double cabs. 

Lorries and others were the next. According to above graph it was found that more than 

64.44% of vehicles in active fleet within the survey sample were beyond their useful life; 

which means over 10 years of age. 

40 



4.2 Downtime vs. Age 

According to the results of analysis it was obvious that vehicle downtime increase with the 

age of any type of vehicle. When it's compared total average downtime between the same 

types of cars of age category as 0 - 5 years of age and 5 - 1 0 years of age were 705 days and 

2302 days respectively. As well when we consider the age categories 1 0 - 1 5 years of age 

and 15 - 20 years of age they are 4309 days and 4702 days respectively. When observing the 

graph; it's clear that any vehicle category give the same result. 

12000 
IS 01 > 10000 
c 8000 01 
E 6000 
c 00 o 00 o 4000 
0 o 

V 
V 

(M 2000 

I 0 
01 > 
« 
0 1-

Downtime of vehicles in year 2008 

0-5 5-10 10-15 

Age Category (Years) 

15-20 

• Cars 

• Jeeps 

• Double Cabs 

• Lorries 

• others 

Figure 4.2: Downtime of Vehicles in year 2008 

When we study the above graph we can figure the relationship between the downtime vs. age. 

And it could be seen that the downtime gradually increase with aging. The vehicles of age 

category below 10 years of age has less downtime where as vehicles of age category above 

10 years of age has higher downtime. As well we can state that downtime is directly related 

to the availability of vehicle. Therefore aging of vehicle fleet affects the availability of 

vehicles. 



4.3 Annual Usage vs. Age 

Vehicle's annual usage rate among the vehicles of government fleets were declining 

according to their age categories in a significant manner. The graph below shows how the 

annual usage is affected by the aging. 

6000000.0 | 

5000000.0 • 

| 4000000.0 - | i C m 

I 3000000.0 • J -

•= 2000000.0 • • p ' f t • | I Double 

I 1000000.0 I p • I Lorries 

q q H H • H H f l H H • B a Others 

1 0-5 5-10 10-15 15-20 

Age Category (Years) 

Figure 4.3: Average Usage of Vehicles in year 2008 

Usage of Cars 

Average usage of cars is calculated according to age category as follows. 

1) 0-5 years 

No of units of cars in the sample (up to 5 years of age) are 137. 

Usage of cars in year 2008 of this age category is 3908392 km 

2) 5-10 years 

No of units of cars in the sample (up to 10 years of age) are 139. 

Usage of cars in year 2008 of this age category is 3134034 km 

42 



3) 10-15 years 

No of units of cars in the sample (up to 15 years of age) are 162. 

Usage of cars in year 2008 of this age category is 258675.1 km 

4) 15-20 years 

No of units of cars in the sample (up to 20 years of age) are 91. 

Usage of cars in year 2008 of this age category is 927944.1 km 

When we consider the above information regarding cars; it's obvious that usage decreases with 
age. And it's common to all the vehicle types in the research. 



4.4 Annual major repair cost vs. Age 

Old vehicles show greater possibility of having high repair costs. So as to the below chart its 

revealed that repair cost of vehicles of 5 - 1 0 years of age is 39% more than that of the 

vehicles in 0 - 5 years of age in the type of jeeps. Then we can see that the repair cost is 

gradually increased with age as 42% in the 10 - 15 age category and 43% in 1 5 - 2 0 age 

category. According to the study it is obvious that repair costs of older vehicles are 

comparatively higher than that of the younger vehicles. 

50000000 

n 40000000 

30000000 

ti 20000000 o u 
•fe 10000000 (a a 
4> 

0 I-

Annual Major Repair cost in year 2008 

0 - 5 5-10 10-15 

Age Category 

15-20 

• Cars 

• Jeeps 

• Double Cabs 

• Lorries 

• others 

Figure 4.4: Annual Major Repair Cost in year 2008 

Calculation of annual major repair cost of cars in year 2008 for age category 0-5 years 

(2*50765) + (10*43125) + (20*55252) + (5*51 125) + (1 *75163) + (6*53125) + (5*67278) 4 
(5*75235) + (2*75256) + (1*575 65) + (18*452 86) + (2 * 49132) + (3*5 6758) + (7*65278) + 
(2*73126) + (42*97372) + (1*60923.14) + (5*73250) = Rs 9411681 

Repair costs of all the other types and age categories were calculated in same manner. 

44 



4.5 Fuel Consumption vs. Age 

In this study it was identified that fuel consumption of any type of vehicle increase with aging 

in a significant level. Even when we consider local and international literature regarding fuel 

consumption; aging is given as one of the main factor influence the rise of fuel consumption 

of vehicles. It's clear that old vehicles are less fuel efficient when we compare with the 

modern and latest vehicles. 

10.00 

9.00 • 
8.00 

j 7.00 

I 6.00 

if 5.00 
4.00 I 
3.00 • 
2.00 

1.00 
0.00 

Figure 4.5: Average Km/Liter 

The way which fuel consumption increase with the age is clearly appeared in the above 
figure. This fact is seen in all the vehicle types. Not only the age but also inadequacy of a 
proper fleet management also leads to increase fuel consumption. Even the literature review 
proves that old vehicles have less fuel efficiency compared to younger vehicles. 

When we concern 10 - 15 years age category; all types of vehicles show that fuel 

consumption isn't economical. Remedy for this situation is overhauling the engine. A lot of 

money has to be spent for repairs and downtime is also high. Therefore it is better to take 

policy decision to improve fleet management. 

1.99 

o - s 5 - 1 0 1 0 - 1 5 

Age Category(Years) 

1 5 - 2 0 

45 



4.6 Average Downtime per vehicle 

The graph given below shows the average downtime per vehicle and how it affects the active 

fleet. Downtime in each vehicle type increase with the aging and mostly the vehicles beyond 

the age of 10 years has a high downtime. 

80.00 

70.00 

60.00 

> n 50.00 
a 
V 
E 40.00 
c 
i 0 30.00 

a 

20.00 

10.00 

0.00 
5 -10 10-15 

Age Category 

Cars 

Jeeps 

Double Cabs 

Lorries 

others 

15-20 

Figure 4.6: Average Downtime 

When above graph is considered it 's obvious that every vehicle type beyond 10 years had 

been grounded for more than one month. Then it when we consider the age category between 

15 - 20 years, all the vehicle types was grounded for 30 - 60 days. In addition to these 

grounded period; approximately another 45 days time should be added so as to complete 

tendering process. So it 's better to replace vehicle than rehabilitation. 

Table 4.1: Average Downtime 

0-5 5 - 1 0 10 -15 15-20 
Cars 5.15 16.56 26.60 51.67 
Jeeps 5.50 15.41 32.18 57.59 
Double Cabs 5.40 15.46 31.32 56.45 
Lorries 8.92 17.70 33.00 68.40 
others 6.17 18.31 31.16 52.97 

46 



4.7 Maintenance Cost/Km per vehicle 

25.00 

20.00 

15.00 

310.00 

5.00 

0.00 
0 - 5 5 - 1 0 1 0 - 1 5 

Age Category (Years) 

23.49 

1 5 - 2 0 

Figure 4.7: Average Maintenance Cost per Kilometer 

According to above graph it was revealed that the maintenance cost per Km per a vehicle 

increase with aging. We can see that this cost has increased in 5 - 10 age categories than 0 - 5 

age category by a slight percentage in each vehicle type. But after 10 years of age we can see 

a rapid increase in cost. Therefore it's obvious that cost per Km increase with aging. 

When 10-15 years age categories are concerned; maintenance cost/km increased 

approximately doubled. If we consider 15—20 years age category; it's very uneconomical. 

Therefore it's better to go for a replacement policy or plan. 



4.8 Average Annual Major Repair Cost 

350000.00 

300000.00 

250000.00 

~ 200000.00 
DC 

M 

3 150000.00 

100000.00 

50000.00 

0.00 

0 - 5 5 - 1 0 10-15 15-20 

Age Category (Years) 

Figure 4.8: Average Annual Major Repair Cost per vehicle 

Table 4.2: Average Annual Major Repair Cost per vehicle (Rs) 

0 - 5 5 - 1 0 1 0 - 1 5 1 5 - 2 0 
Cars 68,698 84,632 116,676 139,357 
Jeeps 118,116 122,208 140,948 193,016 
Double Cabs 73,892 199,729 160,530 306,656 
Lorries 92,315 112,179 146,553 238,030 
others 65,119 80,047 110,011 245,096 

As well as maintenance cost; average annual major repair cost is also increase with aging. In 

the above graph; only in vehicle type of Double cabs of age category 1 0 - 1 5 years of age, 

line graph has gone down due to the reason that no of units are greater in 10 - 15 years age 

c a t e g o r y than 5 - 1 0 years age category when the total cost is divided by no of units average 

cost per unit in 10-15 years shows a less value than 0-5 years age vehicle. But actual cost of 

Double cabs in 10-15 age category is greater than 5-10 age category same as all the other 

types. 

48 

Cars 

Jeeps 

Double Cabs 

Lorries 

others 



4.9 Average Annual Usage of Vehicles 

Figure 4.9: 4.9 Average Annual Usage per vehicle in year 2008 

Above graph clearly shows how the annual usages of vehicles gradually decrease with age. 

Cars, jeeps and double cabs show a systematic or even downfall in usage while lorries and 

other vehicles show a downfall with uneven points. But still all the types of vehicles show the 

common feature that usage decrease with age. 

49 



4.10 Mobile Air Emission Standard 

In this survey it has been proven that 64.44% units of vehicle exceed the point of their useful 

life time of 10 years of age or 300000km of usage out of total vehicle fleet of the study. More 

than 90% of these old vehicles fail the standard emission test when they face for the first 

time. Therefore the institutions have to spend a huge amount of money to recondition the fuel 

system of older vehicles in order to obtain the revenue license according to the latest 

regulations of the government. Therefore age of 10 years or usage of 300000 km should be 

considered as the cut off point to replace the old vehicles. 

According to the publication Sustainable Transport Options for Sri Lanka (Feb 2003) reveal 

that "Emission factors are strongly influenced by the age of vehicles" It's realized that not 

only to the efficient fleet management; old vehicles make trouble to the society as well. 

4.11 Use proper data base for Storage of necessary vehicle data 

It was identified that all the 20 institutions in the sample survey didn't have a vehicle 

maintenance data base. In order to literature review of vehicle fleet maintenance it's obvious 

that appropriateness of a data base. Accurate data of things like odometer reading, fuel cost, 

repair cost, periodical maintenance data and labor management data are necessary to improve 

fleet efficiency. 

4.12 Comparison of Variable Cost 

The following table shows the comparison of variable cost (Maintenance cost & Cost of Fuel) 
of 15-20 years (Old) and 0-5 years (New) Double cab of Department of Agrarian 
Development. It was assumed that the price of a diesel liter was constant at Rs. 110. That is 
because price of diesel was changed during the based year. 



Table 4.3: Comparison of Variable cost of Double cabs (New & Old) 

Aging 
category 

Maintenance 
Cost(Rs) 

Total 
cost of 

fuel 
(Rs) 

Km 
per 
liter 

Annual 
Usage 

Average Fuel 
Consumption 

Total 
Variable 
Cost(Rs) 

Variable 
cost per 
km(Rs) 

0-5 
(New) 62,506 288,915 10 26265 2627 351,421 13.38 

15-20 
(Old) 131,000 206,250 7 13125 1875 337,250 25.70 

According to the above table, there is a Rs. 12.32 difference in variable cost per km. It is 
shown in following graph. 

Comparision of variable cost of 
Double Cabs (2008) 

E 
a> 
a. 

.Si JQ 

.2 w ra > 

30.00 
25.00 
20.00 
15.00 
10.00 

5.00 
0.00 

1 

0-5 

Aging catogory 

15-20 

Figure 4.10: Comparison of Variable cost of Double cabs (New & Old) in year 2008 

In above comparison; only maintenance and fuel costs are included to obtain vehicle cost per Km. 
Other costs such as repair cost, downtime cost and other operational costs are assumed as same per 
Km. 

51 



Chapter 5 

CONCLUSION 

There are 322 government institutions in Sri Lanka. Out of them 95% have their own vehicle 

fleets. Majority of them are Cars, Jeeps and Double cabs while rest of them is lorries and 

other vehicles such a s vans and mini buses. If we consider all government vehicle fleet, 60 -

70% among active vehicle fleet was beyond their useful life, which means they were over 

lOyears of age or exceed 300000km usage. Old aged vehicles caused to high repair and 

maintenance cost. In this study it was revealed that lack of preventive maintenance schedule 

and plan and proper replacement plan would have cause to increase unnecessary fleet cost. 

As well in Subchapter 2.10 we discuss that old vehicles affect the air pollution. Old and worn 

out engines emit un-burnt fuel with particular matter (PM) or (Pb). These un-burnt fuel 

particles damage the environment while polluting air, atmosphere and water cycle etc. which 

directly affect human, animal and vegetation. Therefore it can be concluded that aged vehicle 

without proper not only increasing of fleet cost but also social cost. 

From questionnaire survey," interviews, checking past records, literature review and research 

being carried out in previous chapters; we have found what our selves could have achieved 

and hence conclude the following 

At this study in Subchapter 4.5, fuel consumption vs. age; it has been proven that how fuel 

efficiency decline against age in all types of vehicles. In according to the line graph Figure 

4.5 facts that average km/I for all type of vehicles which are below 10 years are reasonable 

which means there fuel efficient is clearly appeared. But for the vehicles beyond 10 years of 

age fuel consumption isn't economical for the cost effective fleet management in government 

institutions. In Subchapter 2.7 fuel economy is discussed, and how the fuel economy 

decreases with age of vehicles are elaborated. Above findings may determine that age shall 

be proposed to make a vehicle replacement plan for the government to improve their fleet 

management methods and to increase the efficiency of fleet management. 

Using downtime data in Chapter 4 it can be analyzed the relationship between aging of 

vehicle and downtime. There the line graphs Figure 4.6 clearly shows that downtime is low in 

the vehicles below lOyears of age and it 's basically less than one month and in the vehicles 

above lOyears downtime have increased in all the institutional fleets from 30-60 days and it 's 

52 



common to all the types of vehicles. In addition to these down days at least 45days should be 

added to it as it takes time for tender procedure [11]. This determines vehicles over 10 years 

of age should be replaced or rehabilitated. But at present spare part cost and labor are very 

much high. Therefore it is better to replace. 

In Chapter 1 at introduction, it was discussed that every year government allocate 

approximately 4 .5% out of its capital expenditure on vehicle fleet management. It 's obvious 

that very large amount of money has been spending when comparing with other sectors like 

education and health. In this study we find out evidence such as aging of vehicles increased 

unnecessary cost. In Figure 4.7 it 's seen that maintenance cost vs. age/ cost per km is high in 

all the vehicles beyond 10 years. So by observing the Figure 4.7 it was revealed that 

maintenance cost rapidly increase with age, when vehicles reach 10 years of age. And by 15 

years they show sudden growth and it reach the peak. From this analysis i t 's observed that 

maintenance cost per Km is being rapidly increasing with the age of 10 -15 years. Therefore 

its better to consider vehicles of this age category shall be replaced 

In order to the findings in this research; it was revealed that average annual major repair cost 

vs. age increased at the point of age 1 5 - 2 0 . In Figure 4.8 this is clearly seen, cost is rapidly 

increased. When managing vehicle fleets the vehicles belong to 1 5 - 2 0 years should be 

repaired to fulfill the demand tough a high cost has to be born on these repairs. Too it takes a 

long downtime for these repairs. By going for such repairs government lose its fleet 

efficiency as well as money unnecessarily. Therefore it 's better to take a decision to write off 

such vehicles and purchase new vehicles which are cost efficient. This will help to cut down 

unnecessary cost and improve fleet efficiency. 

At Subchapter 4.9 it was discussed about mobile air emission standard. In this research it has 

been proven that 64.44% of government vehicles exceed the point of their useful life time of 

lOyears of age or 300000km of usage out of total fleet of the study sample. According to 

questionnaire survey it was found that more than 90% of those old vehicles fail the standard 

emission test when they were tested for the first time in every year. Therefore institutions had 

to pay a lot of money to recondition the fuel system so as to pass the emission test to make it 

eligible for setting revenue license. Not only government institutions; aged vehicles effect the 

society also [3]. At literature reviewed "Sustainable Transport for Sri Lanka' (Feb2003) 

I "Emission factors are strongly influenced by aged vehicles. Our study and literature both 

53 



conclude that vehicles beyond 1 0 - 1 5 years old should be replaced to improve vehicle fleet 

management in government institutions. 

To improve vehicle fleet management efficiency in government institutions it was found that 

following factors are also influenced. 

• Less staff training regarding proper fleet management. 

• Drivers less technical know how 

• Absence of preventive maintenance schedule 

• No proper inventory management 

Staff working in the transport section should have a training to cut down unnecessary cost. 

They should be given a special training about technical knowhow and computer training to 

keep records about repair and maintenance cost (Maintain a data base), insurance data, 

accident data records and labor detail. It is a great support to hold drivers training about 

technical knowhow and road rules to improvement of vehicle fleet efficiency and cut down 

unnecessary fleet cost. 

According to the survey 90% of institutions are doing routing maintenance only (5000 km oil 

changing) and they do not have a preventive maintenance schedule at least. In an efficient 

vehicle fleet maintenance system, there should be a preventive maintenance schedule that 

affect to the reduction of maintenance cost. Unlike in Sri Lankan government institutions, 

other foreign organizations use international standard vehicle fleet management schedule 

which is used for preventive maintenance and record cards which is used for keeping records 

about vehicles' periodical maintenance in timely manner. Especially mission of organizations 

for United Nations (UN) implement this system worldwide even in Sri Lanka. (Refer 

APENDIX II for International Standard Preventive maintenance schedule, maintenance 

record card and Manufacturers recommended maintenance schedule). By considering above 

we can suggest a similar preventive maintenance schedule and a maintenance record card for 

Sri Lankan government fleets; which will decrease the fleet management cost and increase 

fleet management efficiency. 

When Chapter 1 ' s introduction is considered; it was discussed that all the records are kept 

manually. It 's better to introduce an electronic car log system. It'll have a better picture as 

54 



accurate fuel monitoring and record keeping system, electronic maintenance management 

system and automated preventive maintenance schedule are implemented in such a system. 

This will affect a lot to cut down unnecessary repairs, cost and improve quality of fleet 

management. 

In annual usage vs. age in the Figure 4.9 it was analyzed annual vehicle usage against age in 

government fleets. And the fact that usage rate of all the types of vehicles rapidly decline 

after their useful life time; which means 10 years of age was clearly defined. When we 

consider the down time, it prove that aged vehicle has more downtime. Therefore both less 

usage and more downtime derive the same statement which we obtained in Chapter 3, data 

collection via an interview with drivers regarding condition and performance of their vehicles 

below 5 years of age. It was revealed that these younger vehicles have a better usage. In other 

words they were cost effective, had a less downtime, less repair cost and fuel efficient. In this 

study it s observed that usage slightly decrease with age and it rapidly decrease after lOyears 

of age in vehicle types such as cars, jeeps and double cabs. And in lorries and vans after 15 

years since they 've built for hard use than previously mentioned vehicle types. Finally we can 

give the following statements. 

• Vehicles like cars, jeeps and double cabs should be replaced after 10 years 

• Lorries and vans should be replaced after 15 years 

In the previous Subchapter 1.12 Existing fuel policy is discussed. It has some failures when it 

comes to refueling because drivers can do malpractice or pilferage. When fuel order (General 

231) (Refer APENDIX III) is used, drivers can refuel in specified fuel station only. And 

when drivers go out of the city; they cannot refuel using this orders. Therefore fleet manager 

have to face difficulties to avoid such problems and to improve fleet efficiency. It 's better to 

introduce electronic fuel card system. It can be used island wide and this can minimize 

pilferage and accounts could be kept accurately. 

As we discussed in Subchapter 2.3 and Table 2.1 new vehicle prices are very high cause of 

unreasonable duty structure practiced by the government. Therefore the government shall 

give a duty concession for government institutions so as to purchase new vehicles and to 

improve their fleet management fleet efficiency. Also it was discussed that spare part prices 

have also increased by unafifordable amounts. In APPENDIX III you can see that price of a 
55 



brand new Mitsubishi double cab with 4D56 engine was Rs 863,476 in year 1995 and in 2008 

price only for 4D56 engine nearly Rs 4 million. When analyzing these prices the fact that 

even duties for spares are excessive was revealed. So as to rehabilitate old vehicles in the 

government fleets; government itself has to take decision to cut down spare part prices by 

reducing taxes. 

According to the Table 4.3, we can see that there is a significant difference in number of km 

driven by a new (0-5 years) and old (15-20 years) and it is 13140 km. It is more than the 

number of km driven by an old double cab. It should be noted that the maintenance costs 

incurred by both vehicles. A new double cab is having Rs. 62506 maintenance cost while an 

old double cab is incurring maintenance cost of Rs. 131000 for the base year 2008. Further 

according the calculation made for the variable cost per km was Rs. 25.70 for an old double 

cab and Rs. 13.38 for a new double cab. Therefore it is better to determine to take a decision 

to make replacement policy so as to improve the efficiency of government vehicle fleet 

management than rehabilitation of old vehicles. 

When we study on vehicle fleet management; i t 's better to consider impact of depreciation 

cost is 10% per year for a vehicle; proportional to its purchasing value according to 

government procedures. After 10 years book value of the vehicle will be zero. According to 

this study major repairs such as engine, gear box, suspension, break system, electrical system 

and body repairs etc. of vehicles occur after 10 years. As an example at this stage it'll take 

approximately Rs 3 million to recondition a jeep and Rs 6.5 million to buy a new one. 

Though it seems that reconditioning the vehicle is cheap, when we consider the quality of the 

vehicle, fuel efficiency, safety, reliability etc. of the new vehicle is very much greater than 

the rehabilitated one. Since rehabilitation cost of old vehicle is added to its capital; capital 

costs of old and new vehicle will be nearly equal. But reselling price of rehabilitated old 

vehicle after 5years will be lower than reselling price of the new vehicle used for 5years or 

even lOyears. Therefore it 's clear that replacing older vehicles by new vehicles is very much 

cost effective than rehabilitating old vehicles. 

56 



Chapter 06 

RECOMMENDATION 

According to this research it was found that government fleet management system does not 

have a proper vehicle replacement policy. Because of that old vehicle population is high in 

government fleets. As well repair, maintenance, downtime and fuel costs were very high. 

And utilization of fleet was low. Therefore to minimize generalize cost and improve fleet 

efficiency; government need to introduce proper vehicle replacement criteria and make 

proper vehicle replacement policy. These policies may help to minimize fleet cost and 

following operational achievement. 

• Reduction of fleet size 

• Reduction of transport capital budget 

• Reduction of operational transport cost 

• Achieve transport availability 

• Achieve utilization 

When we make replacement policy it 's recommended to consider vehicle age, life usage (km 

driven) and life t ime repair cost. 

Recommended replacement criteria 

The following guideline provide minimum replacement goal for the routine replacement of 

vehicles. 

57 

/ 



Vehicle Replacement Criteria 
Table 6.1 

Vehicle Type Purpose Replacement goal (Age or km) 

Cars Staff transport 10 years 150,000km 

Double cabs and 
SUVs (Jeeps) 

Passenger transport, 
Light hauling 

10 years 200,000km 

Vans and minibuses Staff transport and 
light hauling 

15 years 300,000km 

Lorries Hauling 15 years 300,000 km 

To achieve our main objective which is to improve vehicle fleet management in government 
institutions we may use the above recommendations obtained after this study. 



Reference 

[1] Pint Ellen M., Lisa Pelled Colabella. et al. 2008. Improving Recapitalization 

Planning Toward a Fleet Management Model for the High-Mobility Multipurpose 

Wheeled Vehicle. P. 17 

[2] Fleet Management Model Study. US Army 

[3] Munasinghe Moahan. Kumarage A. et al. 2003. Sustainable Transport for Sri Lanka. 

[4] JLARC of the Virginia General Assembly, 2004. House of Document No 05. 

Review of the State's Passenger Vehicle Fleet, p. 56. 

[5] 2003. State vehicle fleet management plan. Texas 

[6] http://www.transaid.org [September 23 2009] 

[7] http://www.sfbos.org/index.aspx?page=3774 [October 6, 2009] 

[8] San Francisco, n.d 

[9] Sugathapala. A.G.T. Air pollution and Control in Transport Sector. Lecture Notes 

M.Eng/PG Diploma in Highways & Transport Engineering. Department of Mechanical 

Engineering. University of Moratuwa 

[10] Jayaweera. 2001. http://www.un.org/esa/gite/iandm/iayaweerapaper.pdf 

[September 23 2009] 

[11] Liyanage.D. 2006. Procurement Manual. National Procurement Agency. 

Democratic Socialist Republic of Sri Lanka, p.40-41) 

p.87 

59 

http://www.transaid.org
http://www.sfbos.org/index.aspx?page=3774
http://www.un.org/esa/gite/iandm/iayaweerapaper.pdf


§ e«9 «CO>&9Maaî£> ®o¥ 2(57 
General 267 

(Booklet F ' cap 4 to) 
11/55 

Department 

c t o s s a © ( - j c r i a d c o d i 

VEHICLE L O G B O O K 

Cf=SKS I 
Departmental Number 

Registration Number 

60 



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Authorised M. P. G. With Load ! Without Load J 

M P. G. isqSmaaS Sg^ ta <}£® SS®3 «ag 

Action taken to remedy defect, if any 

o3s>'sk> SvjcJj&isad qafcssn 
Signature of Testing Officer Tested on 86o0&> 

With 
Load 

S6 
OVyXSOOS 
Without 
Load 

isqSmaaS Sg^ ta <}£® SS®3 «ag 

Action taken to remedy defect, if any 

o3s>'sk> SvjcJj&isad qafcssn 
Signature of Testing Officer 

• 

1 

3 - H 20217 

61 



26 
ffdsfeiSai S 3 ® I REPAIRS 

Workshop Dale tsosari Ojrsg-3 co«tsi 
Miiometer Reading 

o>e eog atMOd 6g»r r OjssaSs! 
Works executed and briefly parts used 

caoSd 
In Out In 

SuntSO 
Out 

o>e eog atMOd 6g»r r OjssaSs! 
Works executed and briefly parts used 

-

62 







Appendix II 

International Standard Preventive maintenance schedule for efficient fleet management 

UNTAES TRANSPORT SECTION 

WORK ORDER No: 

G:.AO BOX. RESESVOff* 8 AXi.PS 
Ô̂T'i IfiSTJtyŵTS $ VWRK COfcfiSCTiOHS 
All STOWS. SUSWOWCW t «HOC* JOINTS 
ANO 8B6M6 AS RCQUMO' 
EXHAUST SYSTEM A 
vVlRER S: AMS BUBBERS 
tutrm fua. s weieeftNOOuMPS 
BOGY, SEATSELTS, SEATS A F.m. TAW 
'.vr:/: WAŜf R A" CONMEATHtOtfflSSTlR CH£CK ;N R-tft (MFSCL i 
TOOLS S gQlWWir 
OTHER ACCSSSGSWS 
BOA," TEST 

cuitcu 

WiSSCRS & UNUSUAL < 
rmma mmime tmm 

8-MAINTENANCE 

CMAM8S Ki. 
FREE ̂ ..Ay. CLUTCH a 6RAK£ - ~c.Ai.tj 
WW S 
tm» AW riiTER aaetsT 

. BATE OUT: 

C- MAINTENANCE (EVERY 533.000 
KMS) 

M ADD: ; :0M TO A S s Si/.VJS 
H&iWSPAflK HMMl «*W»S» «08W»«COMCWSW 
Repi-ACife. 
CH2CK 

CYi-fNdgA :F fl£QU;«Et-
ADJUST VAi.VfS & rl&PuAUc P REQWHED 

CAftsuHSTOR 3CS.T&tA,T8 ?, ADJUST IDi AP»L:CAe: t 
RfiRACP A:R RI.T33* 
ASPECT mSC T*ADS & V.HiNGS 
mum WHES. taw**) 
CHECK TOE-iM & .AOTATP TYf̂S A 
CHAWSE D ..*!*•: .OS-mAMSMISS i ETC. 
AS REHSOMSNDeU 8'' 

M.1!! RgPtAGE A3 NSCES&ART 

D - MAINTENANCE 
S c msmmmcn 

CM5C*fiu.T»i OLAIS . RSiPLACS !f mOMm» 
antes aATfssv - «t»iA6s IF NECKS®*-

w«»»»«*».je>Mf mttrnm 
WEBKAi)i. ALTeBHATCMASrARTES 
REPLACE SUSR&S'ORS ASAeaeRS} 

(mimcm 

RSCONSITKSK :* -t .u.rc-or*-, 
Si.fM ma adjust cms. 

** MMNWWtiGt WAV BsfejOcfe 
:Fowsiwtwa COHKX f.t)HS CAUS »or» if 

BNAL TEST BY; 

DATE: 

RECEIVED IN GOOD ORDER 8¥; 

NAME: 

HQ- ID# 

65 



Maintenance Record Card 

TOOLS & EQUIPMENT ISSUED 

Tripticket Bag 

Veh. Documents 

UN Flag 

Blue Flag 

Jerry Can 

Spout/Funnel 

Tow Wire 

Shackles 

Jack with Base 

Wheel Wrench 

First-Aid Kit No. 

Safety Belts 

Fan Belt 

Fire Exting 

Tool Bag 

Open Spanner 

Screw Driver 
MAINTENANCE RECORD CARD 

The Driver of this vehicle is strictly 

forbidden to carry any passengeres except 

those specifically authorized by the United 

Nations Protection Force. 

UNPROFOR 
T R A N S P O R T SECTION 

LAST MAINTENANCE CARRIED OUT AT 
Km Place 

Date Signature 

NEXT MAINTENANCE 
A. B. C. D. DUE AT KM. 

(Source: UNO) 

66 



Maintenance Record Card 
• 

* Only Personnel in possession of a valid 
»UNPROFOR Drivers Permit« are 
permitted to drive this vehicle. 

* It is the responsibility of the UNPROFOR 
Staff Member to whom this vehicle is 
assigned to assure that the vehicle is 
brought to workshop for repair and 
maintenance as and when required and 
at least once a month. 

Trip Tickets must be property filled out at 
the end of each trip and should, when 
possible, be handed in WEEKLY to the 
MTO. 

•The SPEED of this vehicle must never 
exceed KPH. (Except in 
emergency). 

* In Case of Accident: 

1. Stop Vehicle immediately. 

2. Assist any injured parties. 

3. Do not move vehicle from the scene 
unless it is a danger to other traffic or 
on instructions from local police. 

4. Notify local police and nearest 
UNPROFOR office. 

5. Fill out Accident Report Form (placed 
in Trip Ticket Folder) in duplicate. 

Vehicle Maintenance every 5000 Kms. 

MA! NT. DATE KM. GARAGE/MECH 

A 

B 

A 

C 

A J 

B 

A 

C i 

A 

B 

A 

C 

A 

B 

A 

D 

REMARKS 

TYRE PRESSURE: LBS. KGS. 

FRONT: 

REAR: 

(Source: UNO) 

67 



Manufacturers recommended maintenance schedule 

i 

Maintenance item Service to be performed Service required at indicated distance 1*1.000 Km) 

Remarks 
6. Fuel filter Replace fuel filter 

20 40 60 30 100 
Remarks 

9. Distributor cap, 
rotor and spark 
advancer 
!tor breaker point -
lens-typo distribu-
tor only) 

Check the condition of distributor cap 
rotor and spark advancer o 

o 

o 

11. Timing belt 

Check ignition tables for damage 

Roplacs timing belt 
O o o o o 

12. Crankcase emission 
control system 

Check operation of crankcass emission 
control system O o o o o 

— 

13. Fuel vapor hoses 
and crankcase 
ventilation hoses 

Check fuel vapor hoses and c<onkcase 
ventilation hoses o o o o o 

14. Exhaust gas rectr-
udation system Check exhaust gas recirculation system o o o o o 

16. Choke mechanism 
and linkage 

16 Road test 

Check choke mechanism and linkage 

o 

o 

o j o 

o 

O I o 

m 
R e c o m m e n d e d Maintenance S c h e d u l e 1 F o r S ingapore o n l y ! 

T h i s m a i n t e n a n c e s c h e d u l e is a p p t i e d t o v e h i c l e s for o n l y 
S ingapore c o n f o r m i n g t o t h e S i n g a p o r e R e g u l a t i o n regard-
ing the e x h a u s t e m i s s i o n s . 

(Source: Mitsubishi Motors Corporation - Japan) 

68 



APPENDIX III 

Value of a brand new L200 4D56 double cab in year 1995 

United Motors Lanka Ltd 
P.O. Box: 697, 100, Hyd« Park Comer, Colombo 7, Sri Lanka. 
Telephone : 2432467/3. 24481 12/4, 2423716-9 Hx.: 24+8113 e-mail: umlKs^tmin.com 

20,h Kbc*SorW un't'd™t0r, lk 

MITSUBISHI 
MOTORS 

Commissioner General 

Department of Agrarian Development 

Colombo 07 

Dear Sir, 

© 

K 

CONFIRMATION OF C I F VALUE ON 

01 UNIT MITSUBISHI L 200 DOUBLE CAB IMPORTED IN 1995 

ENGINE NO: 4DS6- GS4628 

CHASSIS NO: CHNV340SP02199 

With reference to your letter dated 24th Nov 2005, with regard to the above'vehicle, wc give 

below the approximate valualion of the above vehicle. 

Rs. 

O F 

DUTY 

TT 

D/L 

EX-DUTY 

LOCAL CHARGES 

OTHER CHARGES 

PORT CHARGES 

TOTAL COST 

516.303.00 

102,904.00 

154,357.00 

34,730.00 

41.612.00 

12,500.00 

420.00 

650.00 

Thanking You 

Yours Faithfully 

UNITED MOTORS LANKA LTD 

SutjjWe îlwr^" 
.aSJSMtCOGISTICS) 

Chairman : M.j.C. Amarasuriys, Chief Executive Officer/Executive Director: C. Yaawara 
Directors t Mrs. IS. Javaslnfhe. T.M.R.8. Teonekoon. Mn. S.M. Chrv*Kton\ A. HentJu Y. Sasm Sri Lanka 

69 



Value of the engine of L200 4D56 in 2008 

UNITED MOTORS LANKA LIMITED 
145, Majeed Place, OriKjodawatta. 

Tel r 2531382-4, 5333307 Fax : 2531829 
^ . ,..„•.; Ref. job No. M",^ oQ P - V U v v , o ^ a 

Name of CuslomsrO^O&xCv .-RaUji-f Sxj-JrorfcCT 
^iDEFECTmePOftT: 
„ i ^hirr**&!V*vM«*Mm,ar''• • • "" '"•— "11'11 

n 
s 

Registration Noku.pn. K.-29.® Q, 

Vehic!e Model KM Reading: Chaste No.H^eaNH^OBtt^Qfll 

1. Engine Lv-^ in e. tT-CXob vc ^Uc i ^-e^ 

(GUNi) NL-W) ^O IMCUV^CJ E v ^ W 

6. Steering ' j 

! 

"(S to c k ; Cm^ *> JLL-̂  14 d 

pWv-^fi, UJLUJ 

7. Brakes 

i 

, t-^oj'ivu. Q ', | 

iCW^vj j 14 e Hr* 
Ura-iiJ 'p-u-w, p , o \ -f i f 

1 i 

1 

UNITED MOTORS LANKA PIC, 

8. Cooling System 

~. M^JEb^.FLACE, 
• ' mjvsdDAvl&fre, 

TEL: 253}382-4, 2572466, 233931? 

9. Electrical 

5. t-ront Axel / Suspension 10. O the rp_ ^ ^ Oo4t4 W i M U 

cupp-iro-K ~ AooooOO/-. 

Please contact our Service Advisor K.9, for furtteUcJormaiton, 

Tel O T l l l t e M A , Date u JSLSdas f cS Signature 

70 



APPENDIX IV 

Government fuel order 

covBBssaarx o r d b s 

m; 331 
(Oris. R2 'L Blu», Dm). 
B 2/Pink, Trip. £,1/ 
WhUa S , T.4Si.)a'5S 

2 l1 l t 012b 
<»!»§*<<• CfrfvKCZ gSde 

(Siû ^̂ A. 5S*I.-JIXb, jg*& *..&} vrcftldaar*, *.girt»C!} 
(Petto;, Komerse, Diss*!, Fwreiw Ou, Lubricants) 

(« ^tb Jt-Jlq-ssr 8 $ Gun&C.m&tGUHBioj&im /iff 
(Eaara uwfcr (4) : ,df<>r olh-* prcdusb ektvld 6« struck ojjti not ultlufa^ 

CI) a g ^ t r f oste^ ? 

jSotiJSesoa^ ess <382-5ca) 

Ou. «9iUffU.7̂ c3<Jr/{ywMt/jS»Sr 
<2twcgt2j aps&jffiqa} 
Orcior <m 
(Name and Address of C?C Dealer /Agent} 

(2) ĵ sgd sacfcfetsi ? 

tfULWXhXH.f 

Doliyer to 

/ 

J 

<S2S* QOB /Vehicle Identity Card No. 

Q:^K*ssihj(iuxn\x.ntCijKfriiq. f&.Geaira? /" — 
.̂/V̂ cJg/̂ r/Lorrj' No. J 

; "j QjJOi&zn&d OiczScD ssisSod̂ ) 
< Tn C&3Q of supplies to tank of vsh ic'e} 

(<*»»© ©aWKStrf Vipss* Ajufifrifln c 

t»8> Clto <3SS3C5) 
uecsg, 

Qtmrxiir, 
Charge to {Name and 
Addro3fi of buying Autboriiy) 

0 of bulk «upplie®). 

Corporation Aocouafc Ntur.bor 

(4) <Jr*V3Trif OacKB;?i> (IN- OASLCSS) 
tji&ti&ij G¥i7«>s (asuaAfc) 

QtfAKriTT StTFUED fI?T GAXX03CS) 
Product Name 

In jigurtv 
Qsi 
its teww Ifj figure* 

Qgtsf 
Gt 11 
In word* 

<3»2S» g95 

Lanka Sopor ••• 

8 3 
(gaji&̂ n- airfinassa 
Lanka Rognlar • 

< 

r -sf 1- ( 

CO 

Se^CSj/eSrf^-s'Sf izzgzsmj 

nsQajaijuibiSpicimtm Sujnaltf-: of Av, 
ihoriacd RtcipUnt. 

jQjtpfltot*: ' 

Signature of Order in? Aaihwity. 

ZXp XvGteluf.&iZivnmat-ori; 

Signature of DuulcrjAgOnL 

. tam.mn.yiA. 

Oi'daO Si CS»f tcj<Sc3£ Cv 
Qfinws. " qstgijd?C®3>?*» Qtiaqr.ti' , , u , 

-}ff#<£ii2J0jQux£»<S"nCs Quptr-JCi. 
Product indicated in *'<5u«a«!ty Supplied' cags rcoejved by me/iiito tarik of Vehic.k No. ...../Ic belli 

Si$mtur* of Ktsetpietu. 

BlQjGun.iftfaju,. 

71 



APPENDIX V 

Questionnaire 

Questionnaire for Vehicle Fleet Survey 

Name of the Department: Department of Agrarian Development 

1) What is your fleet size? 113 

2) Please classify your fleet according to age 

Type of 

Vehicle 

Age <5 years 

No of units 

Age <10 years 

No of units 

Age <15 years 

No of units 

Age <20years 

No of units 

Cars 01 02 03 04 

Jeeps 02 03 10 15 

Double Cabs 03 05 16 20 

Lorries 01 04 07 09 

Others 01 01 04 02 

72 



3) Average annual usage (miles traveled) in year 2008 per vehicle 

Type of 

Vehicle 

Age <5 years 

(Km) 

Age <10 years 

(Km) 

Age <15 years 

(Km) 

Age <20years 

(Km) 

Cars 20,603.5 18,663 9,683 6,205 

Jeeps 27,853 20,273 15,123 11,123 

Double Cabs 26,265 35,176 15,125 11,685 

Lorries 18,643.3 14,997 12,873 9723 

Others 24,256.04 20.635.2 16,123 10,756 

4) Fuel Consumption & Cost in year 2008 per vehicle 

4.1) Age below 5 years 

Type of Vehicle Average Km per liter 

Cars 10 

Jeeps 9.4 

Double Cabs 9.5 

Lorries 4.6 

Others 8 

73 



4.2) Age below 10 years 

Type of Vehicle Average Km per liter 

Cars 8.3 

Jeeps 7.5 

Double Cabs 7.4 

Lorries 3.6 

Others 7 

4.3) Age below 15 years 

Type of Vehicle Average Km per liter 

Cars 7.1 

Jeeps 6.7 

Double Cabs 6 

Lorries 2.8 

Others 6.2 

4.4) Age below 20 years 

Type of Vehicle Average Km per liter 

Cars 7.8 

Jeeps 5.9 

Double Cabs 5.1 

Lorries 2.1 

Others 5.2 

74 



5) Average annual major repair cost with ageing in year 2008 per vehicle 

Type of 

Vehicle 

<5 years 

Rs. million 

<10 years 

Rs. million 

<15 years 

Rs. million 

<20years 

Rs. million 

Cars 60,923.14 75,867 125,130 137,125 

Jeeps 63,293 97,478 155,656 175,626 

Double Cabs 62,506 66,265 131,300 243,126 

Lorries 97,253.10 107,813 153,453 185,254 

Others 47,856.43 63126,19 87,256 110,126 

6) Average down time per vehicle 

Type of 

Vehicle 

<5 years 

(No of days) 

<10 years 

(No of days) 

<15 years 

(No of days) 

<20 years 

(No of days) 

Cars 06 11 26 40 

Jeeps 09 15 28 42 

Double Cabs 05 13 26 42 

Lorries 15 23 31 58 

Others 10 27 33 49 

75 



7) Do you implement a vehicle replacement policy? 

Yes Q No | X 

If its yes what is your replacement method? 

Year Km 

8) Do you maintain preventive maintenance program 

Yes O No I X 

If its yes what type of maintenance do you apply? 

You may select more than one answer 

1) Maintenance in every 5000Km 

2) Maintenance in every lOOOOKm 

3) Maintenance in every 20000Km ^ 

4) Maintenance in every 80000Km [ 

76 



9) Please answer the questions by simply ticking in the appropriate box. Use the 

following criteria to rank availability of vehicles related to its age. 

Criteria Very Poor Poor Good Very Good 

Weightage 1 2 3 4 

What is the availability of the vehicles according to age? 

9.1) Vehicle age below 5 year s 

1 2 3 4 

• • • • 

9.2) Vehicle age below 10 years | | | | |~T| [ | 

9.3) Vehicle age below 15 years | | | 2 | 

9.4) Vehicle age below 20 years Q Q Q 

10) Do you have a maintenance data base system? 

Yes • No 

If your answer is no how you do keep records regarding maintenance and cost? 

Manually 

77 



11) Do you have proper maintenance schedule? 

Yes | | No 

12) What type of intelligence equipment does your organization use to 

improve fleet management efficiency? You may select more than one answer. 

1) Car log system No 

2) Car navigation system I N o 

3) GSM No 

If you don't possess an intelligence system what's the method you use to improve 

fleet management efficiency? 

Running charts and log books. Fuel records 

13) What is the percentage of vehicles pass the emission test? 

Type of 

Vehicle 

Age <5 years 

No of units 

Age <10 years 

No of units 

Age <15 years 

No of units 

Age <20years 

No of units 

Cars 90 82 45 22 

Jeeps 90 82 45 22 

Double Cabs 90 82 45 22 

Lorries 90 82 45 22 

Others 90 82 45 22 

78 



14) Please tick in the appropriate box to indicate to what extent that given statement are 

valid 

Criterion Very Low Low Medium High Very High 

Weightage 1 2 3 4 5 

14.1) Strength of purchasing new vehicles 

14.2) Adequacy of financial facilities for 

vehicle