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Linking Manufacturing Sites to Protect Employee Retention

Elías Dana - Transportes LIPU
Director General

STORY INLINE POST

Thu, 09/01/2016 - 15:17

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Q: How has Transportes LIPU contributed to improving Mexico’s traffic conditions and developing an enhanced mobility solution?

A: As road conditions have a tremendous impact on traffic conditions, especially in school zones, cities have huge areas of opportunity to improve transport. The benefits of mass transportation are evident since single buses may transport as many passengers as 20 or 25 cars in some cases, such that an average of 20 buses can easily replace 400-470 cars, significantly improving the quality of life in residential areas. Although a single bus emits roughly four times more CO2 than a car, emissions are actually cut by five considering the number of cars replaced. A few years ago, the Mario Molina Center and Mexico City’s Ministry of the Environment (SEDEMA) carried out studies revealing that urban areas surrounding schools had the highest pollution levels. A complementary study showed that pollution levels in schools whose pupils traveled by car were abysmal compared to those serviced by buses. School buses, therefore, work in the interest of the environment.

We started as a school bus company but have grown considerably beyond that mainly in the industrial and corporate sector. The latter is as important as our school division, if not more so. Companies have realized that transport services are highly appreciated by their employees, ranked at the same level as cafeteria services. Furthermore, job switching is often fueled by length of commute. Thus the level of employee retention increases for companies that offer transportation.

Q: How do you plan to further permeate the automotive industry as plants are built in unpopulated locations?

A: Settling in unpopulated areas is an industry trend. For the automotive industry, large supplier networks are formed when carmakers enter the market. This means that LIPU’s comprehensive transportation systems must consider OEMs’ employees as much as their suppliers and we expect plenty of demand for our services from new companies. Furthermore, we may have the opportunity to establish links between manufacturing sites and nearby towns to supply sufficient human capital for all companies in the region. Car manufacturers and suppliers see themselves obliged to provide their workforce with transportation services to retain them. This niche is particularly important to us because 99 percent of our activities outside metropolitan areas are industrial.

Q: How does LIPU implement its fleet renewal strategy to increase efficiency?

A: Our strategy depends on the area, the type of service provided and the clients’ requirements. There is no set policy in terms of renewals. Our buses have an average useful lifespan of approximately 1 million km and 20-30 years. At times, it may be necessary to renew our fleet for legislative purposes but we strive for an average bus age of 5-6 years.

Our maintenance policy is in line with the manufacturer’s manuals and protocols, following a strict calendar. We monitor our units to predict and correct future damage. We use an internal administration development system that automatically schedules maintenance sessions according to our operations. Standardizing our entire fleet can be difficult because we use different brands of buses and engines. While a single scanner can now monitor different codes from the many brands that LIPU uses, their efficiency depends greatly on the bus manufacturer’s willingness to allow the codes to be deciphered by generic devices.

Q: What are LIPU’s expectations going forward?

A: The aggressive growth experienced by national industry provides us with an optimistic outlook on 2016 but at local levels, we are more skeptical. To maintain our presence and drive up our profit margin, we must be more efficient and remain at the forefront of innovation. We aim to increase and improve our market presence by increasing our activities in explored regions, while entering new markets. Our focus for 2016 will be on efficiency, directly linked with new technology models. This includes buses with lower fuel consumption, better driving practices, more optimal routes, improved control over our fleet, a decreased number of accidents and enhanced communication with our operators

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