There exist an excellent opportunity for those in the transportation business. It primarily includes investing in trucks and tankers and renting them out to major or unbiased petroleum product marketers to transport their merchandise from depot to their varied filling stations.
Haulage entails the transportation of goods. Since the collapse of the rail system in Nigeria, highway haulage enterprise has assumed a wider dimension and has turn out to be the most utilized way of intercity motion of goods and companies.
It is very important to the socio-financial growth of any nation and if the vision 20: 2020 of the present administration is to be achieved, the federal government must develop the transportation system.
An efficient transport system is an integral part within the manufacturing and distribution of refined petroleum products since most of the products are transport by means of our street networks.
Statistics have it that there are over six thousand 6,000 unbiased petroleum products entrepreneurs and 6 6 main marketers of distributing and advertising and marketing petroleum products throughout the nation, with every requiring haulage companies.
Nigeria currently consumes an estimated sixty million 60,000,000 liters of refined petroleum products PMS, DPK and In the past per day and with population of over one hundred and sixty five million 165,000,000 individuals, growing at the rate of about 2.7% per annum with an estimated financial development price of 5.7% prior to now five 5 years, the market for refined petroleum products in Nigeria, is established, growing and sustainable and by impact the marketplace for haulage providers.
Certainly, most main petroleum merchandise marketing firms like Mobil, CONOIL, go into long term leasing settlement with truck and tanker hiring companies for the transportation of their products to their quite a few filling stations throughout the nation.
There are three 3 basic approach of entering the haulage market they usually embrace
As an Independent Operator
As a contractor or Sub-contractor
Leasing of truck to Haulage corporations
Independent Operator:
As an unbiased operator you operate your truck and seek for contract from the oil entrepreneurs and other interested parties on your own and get paid for deliveries made.
As an independent operator, you’ll do your individual upkeep and repair, employ your own driver. You’ll be able to determine to employ a manager who would scout for items and likewise do the day after day running of the enterprise.
As a Contractor or Sub- Contractor:
As a contractor with an oil advertising company, you place your trucks with the corporate and they’d manage it for you, secure the driver and the maintenance and repair and pay you each month an agreed quantity ranging between N400, 000 to N600, 000.
In fact, it’s a must to be registered with the company.
As a sub-contractor, you’re coming under a contractor in that firm to register your fleets as their very own and pay you an agreed sum after taking their commission.
It is necessary that before going into this agreement you research the terms and circumstances of the contract with your legal professionals.
Leasing of truck to Haulage Corporations:
Leasing out the truck to a haulage company is similar as being a contractor with an oil advertising and marketing firm .The one distinction is that this time you’re going to the coping with a haulage company as a substitute of an oil advertising company although the phrases and situation might not be completely different .
Again it is important to go together with your lawyer.
Quite a lot of haulage companies exist that wants to go into partnership with truck owners.
To participate in any of the above you have to register your truck with the National Union of Petroleum and Natural Gasoline Staff NUPENG.
Simply prefer it would be tough to put a set amount as the start-up requirement, it would be troublesome additionally to state for positive how much to be made from the enterprise because it relies on the tactic of management the enterprenuer desires to make use of.
The amount of begin-up requirement would depend on whether or not you are buying a brand new trailer, second hand popularly often called OKUNBOor shopping for a trailer head and refurbishing the engine. The price of a model new ranges from N 15 Million to N20 Million depending on the brand and capability while the price of a second hand ranges from N6 Million to N7 Million.
However, for the reason that enterprenuer can be shopping for the truck personally, the start-up capital would depend tremendously on his/her negotiating expertise.
The money to be made from the business relies upon significantly on the administration fashion the enterprenuer desires to undertake.
If the enterprenuer choices to lease out the truck, he/she might be making N400, 000 600, 000 month-to-month after deducting expenses .If a trailer travels from Lagos to Kano, they cost between N180, 000 to N200, 000 per trip but if it within Lagos they cost between N40, 000 to N80, 000 relying on the space and the product the truck is carrying.
Opportunities additionally exist in the haulage of fuel.
You possibly can order our detailed feasibility report on haulage business within the downstream sector of the Nigeria oil and fuel trade by clicking on the link below.
Report Title: FEASIBILITY REPORT ON HAULAGE Business Within the DOWNSTREAM SECTOR OF THE NIGERIAN OIL AND Gasoline Trade.
Report Code: FORA/2013/004/63452
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