Heavy equipment trade picking up
Rise in construction and development projects has sent the heavy equipment sale into a new gear. It has also given rise to a new sector which hires out these equipment to contractors and other parties. However, the pace of state-funded projects has slowed this year and many big hydropower projects, which dealer says are a huge market, are yet to begin construction works. According to data compiled by the Department of Transport Management (DoTM), registration of vehicles under the Crane/Dozer/Truck category crossed the 3,000-mark three years ago and stayed above it. In fiscal year 2008/09, 3,594 vehicles were registered all over the country in the category. Five years ago the figure was just 1,592. “During the conflict period, there were hardly any construction and development projects. However, the pace of construction and development projects sped up with the end of insurgency, creating a whole new demand for heavy equipment,” Rabindra Man Shrestha, the managing director of Continental Trading Enterprises, which deals in machinery from Komatsu, the second largest manufacturer of construction and mining equipment, says.
A lot of new players have also sprung up in the business lately. According to Chachan, people now go shopping for dealerships from small companies in China, India and other countries to tap the boom. And if the hydropower projects and other huge development works take off, the future is even brighter, dealers agree.
Source: Republica