There exist an excellent alternative for those in the transportation business. It essentially involves investing in trucks and tankers and renting them out to main or unbiased petroleum product marketers to transport their merchandise from depot to their various filling stations.

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Haulage entails the transportation of goods. Because the collapse of the rail system in Nigeria, street haulage enterprise has assumed a wider dimension and has turn out to be the most utilized approach of intercity motion of goods and services.

It is very important to the socio-financial improvement of any nation and if the imaginative and prescient 20: 2020 of the current administration is to be achieved, the government must develop the transportation system.

An efficient transport system is a vital part within the production and distribution of refined petroleum products since many of the merchandise are transport by way 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 marketing petroleum products throughout the nation, with each requiring haulage services.

Nigeria presently consumes an estimated sixty million 60,000,000 liters of refined petroleum products PMS, DPK and Ago per day and with population of over one hundred and sixty five million 165,000,000 people, rising at the rate of about 2.7% per annum with an estimated financial progress rate of 5.7% prior to now 5 5 years, the marketplace for refined petroleum products in Nigeria, is established, rising and sustainable and by effect the market for haulage companies.

Certainly, most major petroleum products marketing corporations like Mobil, CONOIL, go into long term leasing settlement with truck and tanker hiring firms for the transportation of their products to their quite a few filling stations across the nation.

There are three three basic manner of getting into the haulage market and so they embody

As an Independent Operator

As a contractor or Sub-contractor

Leasing of truck to Haulage companies

Independent Operator:

As an impartial operator you function your truck and search for contract from the oil entrepreneurs and different fascinated events by yourself and receives a commission for deliveries made.

As an unbiased operator, you’ll do your individual maintenance and restore, make use of your personal driver. You can determine to make use of a manager who would scout for goods and in addition do the day to day operating of the business.

As a Contractor or Sub- Contractor:

As a contractor with an oil advertising and marketing company, you place your trucks with the corporate and they might manage it for you, safe the driver and the maintenance and repair and pay you every month an agreed amount ranging between N400, 000 to N600, 000.

In fact, it’s a must to be registered with the corporate.

As a sub-contractor, you might be coming under a contractor in that company to register your fleets as their very own and pay you an agreed sum after taking their commission.

It will be significant that before going into this settlement you examine the terms and circumstances of the contract with your lawyers.

Leasing of truck to Haulage Firms:

Leasing out the truck to a haulage company is same as being a contractor with an oil advertising firm .The one difference is that this time you will the coping with a haulage firm as a substitute of an oil marketing company though the phrases and condition might not be totally different .

Once more it is very important go with your lawyer.

A lot of haulage corporations exist that desires to enter partnership with truck owners.

To take part in any of the above you have to register your truck with the Nationwide Union of Petroleum and Natural Gasoline Workers NUPENG.

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Simply prefer it can be difficult to position a fixed quantity as the start-up requirement, it can be troublesome also to state for positive how a lot to be made from the business as a result of it will depend on the tactic of management the enterprenuer wants to employ.

The quantity of begin-up requirement would rely upon whether you’re shopping for a brand new trailer, second hand popularly generally known as OKUNBOor shopping for a trailer head and refurbishing the engine. The cost of a brand new ranges from N 15 Million to N20 Million depending on the model and capacity whereas the price of a second hand ranges from N6 Million to N7 Million.

Nevertheless, for the reason that enterprenuer could be shopping for the truck personally, the beginning-up capital would rely enormously on his/her negotiating expertise.

The money to be made from the enterprise depends greatly on the management model the enterprenuer wants to adopt.

If the enterprenuer decisions to lease out the truck, he/she can be making N400, 000 鈥揘600, 000 monthly after deducting expenses .If a trailer travels from Lagos to Kano, they cost between N180, 000 to N200, 000 per trip but if it inside Lagos they cost between N40, 000 to N80, 000 relying on the space and the product the truck is carrying.

Opportunities also exist within the haulage of gas.

You’ll be able to order our detailed feasibility report on haulage enterprise within the downstream sector of the Nigeria oil and gasoline industry by clicking on the hyperlink below.


Report Code: FORA/2013/004/63452

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