Guilibaldo Pérez
President
Tytal
/
Insight

Pushing the Limits of Transportation Tanks

Wed, 01/20/2016 - 12:17

Trailers y Tanques was born in 2000 as a family-owned business when Guilibaldo Pérez, President of Tytal, decided he wanted to create a company that would secure employment for his family. Initially, the small company built an average of five tanks per month. As the company grew, Pérez looked into areas where it could expand, and aluminum tanks presented an attractive option since these were not being built in Mexico at the time. According to Pérez, using metal allows for unlimited possibilities, making it a wide sector in terms of opportunities. When Tytal first started working with aluminum, this metal comprised 10% of its products, then increased to 30%, and now the manufacturer is at 70%. “I came up with the idea when I noticed that, in other countries, most rolling tanks were made from aluminum. Furthermore, I noticed that rolling aluminum tanks were used in Guatemala, where the roads can be even in poorer conditions than in Mexico.” A manufacturing plant was finished near Cadereyta in 2008, leading to the creation of Trailer y Tanques de Aluminio (Tytal).

Pérez shares that he presented the end product and a few transportation companies approached him hoping to test the tanks. A few months later, a large company’s trailer tank filled with turbosine was involved in an accident and tipped over a cliff. “The tanks were heavily dented, but it did not crack and the turbosine, which cost more than the trailer, did not spill, ultimately strengthening the trust and interest clients had in Tytal,” he shares. A notable advantage for fuel transportation is that in case the trailer tips over, the aluminum will not create sparks when experiencing friction against the pavement, eliminating the risk of a fire or explosion. In addition, Tytal’s customers also began to realize that tanks have outstandingly low maintenance requirements. Pérez is constantly pushing the limits of what his company can do. Back in 2011, Tytal was awarded the corresponding certifications to export hazardous materials to the US, and the company sold 1,500 tank cars for hazardous materials in this country in 2013. One of the riskiest endeavors the company has undertaken so far was meeting the requirements to make a trailer categorized in the US as ‘super hazardous cargo’, which transports LPG. Due to the difficulties in manufacturing this type of tank and the security requirements entailed, no other company in Mexico makes it. Tytal obtained all the permits and certifications needed to make this product, including the MC331, and is already exporting these tanks to the US. Now Tytal is selling to Saudi Aramco, in addition to distributing products in Colombia, Chile, Ecuador, the US, and Canada. “At the moment Tytal is the largest company of its kind in Latin America, and the reason we are more successful than the competition is because we have all the required certifications, enabling us to handle every type of tank trailer,” Pérez boasts.

Tytal aims for a small market share in the railway sector, so it plans on manufacturing ten railcar units per day in three years, in addition to its regular trailers and tanks. At the moment, the company produces an average of 1,400 car tanks annually. The Mexican market will grow considerably due to the Energy Reform, says Pérez, and it will require 35,000 units in the next five years. “Currently, Mexico barely needs 5,000 units, since the country’s railway infrastructure is lacking, but this will grow exponentially in the next few years.” Of the available railcar welders, 70-80% is Latin American, and 50-60% of that amount is Mexican, so the labor statistics play to Tytal’s advantage. The company currently has 600 workers and will need to increase this number to 1,600 so that it can reach the objective of producing ten railcar units per day across three shifts. Even though other companies are trying to replicate Tytal’s success, Pérez says he does not pay attention to the activities of the competition, as he focuses exclusively on his company and his business. Although his company has faced fierce competition in the US market, Tytal stood its ground and maintained market share. “For me, the company is about accomplishments. My goal is for my family to follow suit and carry on with the company I have built,” Pérez shares.