Haulage includes the transportation of products by street and railway. It is essential to the socio-economic growth of any nation and if the imaginative and prescient 20: 2020 of the present administration is to be achieved, the federal government would have to develop the transportation system . An efficient transport system is an essential component within the manufacturing and distribution of goods.
Because the collapse of the rail system in Nigeria, road haulage business has assumed a wider dimension and has become probably the most utilized method of intercity movement of goods and companies. Items usually convened petroleum products, constructing supplies, containers, solid minerals, agricultural products and different finished products.
MARKET Evaluation OF THE Undertaking
The market evaluation of the undertaking can be considered under the following
three.Projected Calls for
Nigeria has one the quickest rising economies in the African continents. The nation is located 50 degrees north of the equator covering an space of about 923,968 square kilometers.It has boundaries with the next international locations/areas :North _ Republic of Niger, South _ Atlantic Ocean, East _ Republic of Cameroon and West _ Republic of Benin.
Nigeria_s main exports are crude oil,rubber,cocoa,sesame seed,stable minerals,cotton,hides and skin etc. The nation is agreesivelly growing her tourism sector.Nigeria can currently boast of over one thousand one thousand 3 star accommodations and 5 star lodges scattered in different components of the country.
The banking sector has additionally been totally developed to service the increasing financial system.The country has about 25 commercial banks and hundreds of micro-finance banks for easy access to funds for short,medium and long run development tasks to small,medium and enormous enterprises.
The transport sector can be receiving a serious increase from the assorted tiers of government .Presently.greater than twenty delivery strains do business in Nigeria. The country_s home water methods is also agreessively being developed particularly with the latest dredging of the lower benue river.The country has community of roads linking the thirty-six states to one another though the state of the roads is at numerous levels of disrepair. Also over twenty international and fifteen domestic airways do enterprise in Nigeria.
For the reason that collapse of the rail system in Nigeria,more emphasis has been given to highway transportation. The haulage market is national. With a population of over 140 million people,an estimated nationwide population growth charge of 5.7% per annum and an average financial growth price of three.5% in the past 5 5years,Nigeria has a big ,increasing and sustainable market for haulage enterprise.
In the northern a part of the country,the products readily convened are agricultural produce and solid minerals whereas within the southern a part of the nation ,the products readily transaported are petroleum products and different completed merchandise by the business and economic nerve centres of lagos,Abuja,kano,kaduna,port-harcourt,aba and so forth.
Nigeria has remained a powerful member of assorted worldwide organizations such as the Financial Neighborhood of West Africa States ECOWAS which permits for the free movement of individuals,goods and companies amongst member nations hence dipping the market opportunity within the haulage enterprise.
Particular person and corporations usually in need of haulage services embrace multi-nationwide ,manufacturing corporations,exporters and importers amongst others.
Generally, in Nigeria oppotunities exist within the lifting and transportation of petroleum,granite from quarry site ,sand from rivers and completed products from industries and these has lead to a broad clasification of the haulage trade into three namely
Tanker- Trailer: They range in measurement, form and capacity and these additionally have an effect on the use to which they’re put to. Tankers are usually used within the transportation of petroleum products. The size additionally displays the use to which the truck may be put to as kerosene and diesel supply trucks particularly residence supply are smaller then those use filling stations. The trailer will also be used to convene agricultural products from the north to the south . If the entrepreneur intends to use the truck within the transportation of petroleum product, he/she would have to register with the National Union of Petroleum and Natural Gas Workers NUPENG
Tippers: Tippers are used within the transportation of granites and sands from the quarry site and lakes respectively to be used in the construction trade. To be involved in the business, you have to be registered with the quarry site you intend to raise the merchandise from.
Cranes:Cranes are used within the lifting and transportation of heavy duty equiement like generators,transformers,containers,PHCN poles and other such heavy duty equipments.Cranes comes in several design,capability and use.We have the 20 tons cranes,a crane that can carry 20 tons and beneath weight of load.The self loader,that may load it self and the low bed crane used within the transaction of different earth shifting gear like excavators and graders.
As an Independent Operator
As a contractor or Sub-contractor
Leasing of truck to Haulage companies
As an unbiased operator you function your truck and seek for contract from the multi-nationals and different interested parties on your own and receives a commission for deliveries made.
As an unbiased operator,you would do your personal maintainance and repair,make use of your individual driver. You’ll be able to resolve to make use of a manager who would scout for items and in addition do the everyday working of the enterprise.
As a contractor with a multi-national or manufacturing company, you have determined to position your fleet with the company and they might manage it for you,safe the driver and the maintainance and repair and pay you each month a agreed quantity ranging between N400,000 to N600,000.
After all , you need to be registered with the corporate .
As a sub-contractor, you are coming below a contractor in that firm to register you fleets as their very own and pay you an agreed sum after taking there fee.
It is necessary that earlier than going into these settlement you study the phrases and situations of the contract along with your legal professionals.
Leasing out the truck to a haulage firm is same as being a contractor with a multi-nationwide .The one difference is that this time you’ll the dealing with a haulage firm as a substitute of a multi-nationwide although the phrases and situation might not be completely different .
The enterprenuer would meet strong competition from companies already in the business especially when the enterprenuer needs to be a contractor.
For first time operator with small start-up capotal, it is better to lease the truck to a haulage firm however when you’ve got the funds to compete in the market ,go independent.
Financial Analysis OF THE Mission
Simply prefer it would be troublesome to put a fixed amount as the start-up requirement ,It can be difficult also to state for sure how a lot to be made kind the enterprise because it rely on the method of administration the enterprenuer desires to make use of.
The amount of begin-up requirement would rely upon whether or not you’re shopping for a model new trailer,second hand popularly generally known as _TOKUNBO_ or 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 capacity while the cost of a second hand ranges from N6 Million to N7 Million.