Corporate News
Date:
2010-11-10
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YC6L boosts transporter transformation

"High-speed railway bus service is opened!? Logging on to the website of Hubei Highway Transport Co., Ltd. (HHT), you will not miss the blinking news. After the opening of airport bus and commuter services, from April 28, 2010, HHT started off proactively for a way out to accommodate high-speed railway passenger flow and explore an emerging market.

Shuttles favor YC6L

"Our business was severely impacted by high-speed railways, especially long-distance passenger lines leading to cities such as Hefei, Wuxi, Suzhou and Shanghai.? Said Li Si, chief of the Equipment Division of HHT.

According to the source, with the opening of Wuhan-Shanghai EMU in April 2009 and Wuhan-Guangzhou High-speed Railway in December 2009. HHT has suffered a loss of more than RMB 40 million in the income from the primary business-road passenger transport, with more than 40 buses suspended.

When all means are exhausted, changes become necessary. In the face of severe impact from railway passenger transport, HHT did not await its doom, but took precautions, started off proactively, and shifted its focus to new businesses connected to airport, high-speed railway and intra-city commuter. As the Guangzhou Asian Games draws near, the passenger flow of Wuhan-Guangzhou High-speed Railway will be further increased, and the newly-opened high-speed railway buses will become a new profit growth point of HHT.

These new businesses raised new requirements for buses. HHT Tourist Transport Co., Ltd., the only subsidiary of the group running public buses, is specialized in the operations of shuttles such as airport buses, high-speed railway buses and commuter buses, and has more than 150 buses. These buses have one thing in common, which is described by Li Si as best performance but lowest prices?. Shuttles, such as airport buses, high-speed railway buses and commuter buses, differ significantly from road passenger transport in profiting mode. Shuttles yield relatively stable but low benefits, with a longer return time. Road buses normally recover costs in six years, but it takes shuttles eight years. So the prices of the new buses purchased by us are no more than RMB 600,000.?

Just as the saying goes, The wool comes from the sheeps back?, in choosing the key bus assembly-engine, HHT naturally pinched pennies. With prices down, bus performance should remain good.? Import engines are of high purchase and maintenance costs, we purchased a Man engine, but valve repair cost us more than RMB 30,000. ? After that, choosing a cost-efficient homemade engine became Lis top consideration. However, the company chose YC6G300 in the National II period. For this reason, after National III standards came into effect, out of trust in the quality of Yuchai engines, Li insisted on using YC6L310. Since first-time use, the new buses purchased by the company have been equipped with YC6L310.

Fighter in economical models

Li has a law of engine choice-12-meter buses are required for shuttles, while YC6L30 engines are required for 12-meter buses. This is an experience summed up by HHT through constant business transformation and adjustment.

In late 2007, HHT won the bid for the right to run passenger shuttles of Wuhan Tianhe Airport, and input more than 20 buses purchased or transferred from other lines. These buses differ in size and engine brand. As air passengers are medium & high-end ones who have high requirements for bus performance and images, buses should have grand appearances and reliable performance. Through constant run-in, the bus width was extended from 8-9m originally to 12m now. After the introduction of National III standards in 2008, the company chose National III YC6L310 for the first time during bus upgrading. Since put into operation, the model has been recognized for its fuel economy, operability and reliability on 12-meter buses.

"We assess fuel consumption, stipulating that the comprehensive fuel consumption of a 12-meter bus per 100km should range from 26 to 28L. The fuel consumption of Yuchai engines is within the scope of assessment, while the fuel consumption of an import engine ranges from 28 to 30L. Since YC6L310 was put into operation, no overhauls were conducted. If a YC6L310 bus runs 120,000km a year, it has run 240,000km in two years.? Said Li.

In engine maintenance, Li used Yuchai-specific oil instead of oil above the manufacturer standard like other road passenger transporters. He said, Yuchai engines are strong. It is Ok if you follow Yuchais requirements for maintenance. Based on the overall situation, we worked out bus maintenance mileages, requiring every bus be maintained if it has run 8,000 to 12,000km.?

Yuchai engines reassure you and free you from worry. YC6L310 earned a generous profit and great popularity for the company. In 2009, the company achieved a primary operating income of RMB 9.724 million and a profit of RMB 860,000, up 42.6% year on year. Now, YC6L310 has accounted for 50% of the total number of engines possessed by the company. Besides, Yuchai engines enjoy an overwhelming superiority in HHT. All the buses purchased by the equipment division are equipped with Yuchai engines, and the number of engines possessed has accounted for 80% to 90% of the total number of HHT.? Said Li. According to the source, apart from the company, HHT has five other passenger transport companies, which have most of their buses affiliated, but need to report bus configuration to the Equipment Division of HHT for examination and approval during bus upgrading.

From this January to June, in the three segments of Hubei-passenger transport bus, tourist bus and shuttle, YC6Ls sales soared, up 51% year on year.

(Source: Li Ling, Commercial Vehicle News)              

 

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