haulage business plan in nigeria

This Logistics and Haulage Business plan in Nigeria Pdf is regularly updated and can also be used to obtain loans and grants etc.

Logistics And Haulage Business Plan In Nigeria Pdf

Table of Contents

Running a Haulage Business in Nigeria can be very profitable and can serve as a source of Passive income for you. It provides one of the finest opportunities to make good money in a very short time. But many Nigerians overlook this business because it is a little bit expensive to start.

Sample Logistics And Haulage Business Plan In Nigeria PDF –

Be excited because If you are interested in starting a Haulage Business in Nigeria or Africa, After reading this article, you will be on your way to starting your own Haulage business in easy and simple steps and once you have a Haulage business plan in Nigeria PDF you are fully equipped to get into the industry.

Table Of Content

Executive Summary
Business Description
Market Overview
Sales Forcast
Business Operations
Risk Analysis
Business Conclusion

Executive Summary

Nigeria and South Africa have more than 10,000 businesses that are registered as truckers and haulage service providers, forecasts reveal that the demand for trucking and haulage will double across Africa within the next 10 years there is a huge need to move heavy goods from place to place and trucking remains the only viable way to get this done.

The demand for haulage services keeps increasing despite the number of haulage business companies in Nigeria. This is a result of many business activities requiring logistic solutions of moving items from producers to consumers or sellers to buyers.

Today, the haulage and logistic business have become a lucrative area to venture in simply because virtually most business activities require hauling services of different kinds.

To this end ( Logistics and Haulage business plan in Nigeria ) Company is keen on taking advantage of this business opportunity. t6ere is an urgent need for 15-tonne trucks at one of the major (blue chips companies in Nigeria based on Qualitative research and in-depth experience gained from, working with Nestle.

Base on our Little experience the following Projections can be made

Income Projection: The income projected for the first, second, and third-year is as follows: N4, 540, 000, N4, 540, 000, N10, 680, 000. The projected income remains the same for the second year given that the same truck is been used. In the third year, a second truck will be purchased thereby increasing the income by 100%.
Operational Expenses: the projected operational expenses for the first, second, and third-year is as follows: N3, 478, 200, N2, 402, 400, N6, 771, 200. The total amount projected for expenses is based on present realities and projections for the second and third year. An estimated amount of N188, 000, N200, 000 and N370, 000 will be spent monthly on operational expenses in the first, second, and third year.
Capital/Working Capital Projection: The initial capital budget for the project is N3, 580, 000. This will be spent on purchasing the truck, insurance, permits, etc. In the second year, the projected working capital is N1, 361, 800. this is will be obtained from the projected net profit in year 1 and the depreciation rate of year 1. In the third year, the projected working capital is N2, 779, 400. This will not be sufficient for the purchase of the second truck. An additional amount of N630, 000 will be sourced to acquire the second truck.
Profit and Loss: The net profit in year 1, year 2, and year 3 are N741, 800, N817, 600, N1, 648, 800. This represents 19% of the total income generated in year 1, 21% in year 2, and 21% in year 3.

BUSINESS DESCRIPTION

COMPANY DESCRIPTION

( Logistics and Haulage business plan in Nigeria ) The company is a local indigenous haulage and logistics company. The company came into existence after the identification of haulage and logistics business opportunities in Nigeria. (Haulage business plan in Nigeria) The company focuses on hauling Nestle’s finished product from one location to another. The company operates in Lagos, Ogun State and Ibadan

COMPANY SERVICE DESCRIPTION

The core of ( Logistics and Haulage business plan in Nigeria PDF ) company operation is focused on haulage and logistics. Our clientele is well defined and we clearly understand their expectations having worked in the industry for more than 3 years now. On full commencement of our business operation, Nestle will be our primary client for the next two years after which, the company will expand its services to other organizations.

BUSINESS OWNERSHIP STRUCTURE :

Managing Director / Chief Promoter

Gbenga Micheal

Gbenga has a strong passion for hauling and logistics with adequate experience in business management. Gbenga takes the role of the Managing Director/Truck Supervisor/Accountant/Head of Marketing. Gbenga will be responsible for these positions for the first two years of business operations. By the third year, the business will be ready for the first stage of recruitment and expansion.

Charles Olatunde

Charles is a Finance/Commercial Executive with over 17 years of experience across different companies and industries, from indigenous companies to multinationals. His track record includes operations startup/strengthening, Finance/Accounting and related areas, Project Management & Information Systems, with experience across several African countries. He retired as the Finance Director of Veed.

Timothy Micah

Mr. Timothy is the Managing Director of Lapo Ventures, a haulage and logistics company. The company currently has over 50 trucks and has been in the haulage and logistics business for over 10 years.

Stanley Onyema

Mr. Stanley-Livingstone is the Managing Partner and Co-founder of Onasis & Partners Business strategy and Market Communication Department. He is also a highly experienced businessman with investments in oil and gas, transportation, real estate, etc.

LONG TERM AIM OF THE BUSINESS

To build a sustainable and successful haulage and logistics brand recognized as a premium haulage and logistics company in Africa in the next 15 years.

The objectives of the first 3 years include

To own a total of two – Three trucks by the next three years.
To build a sustainable 21 st century company.

MARKET OVERVIEW

The transport and logistics business in Nigeria is as old as the nation itself and there is no doubt that the business has contributed in no small way to the economic development of the country. The transport and logistics business plays an important role in most business activities. Efficient transport is an essential component in the production and distribution process – commonly referred to as supply chain logistics.

Nigeria has the largest road network in West Africa and the second largest south of the Sahara, with roughly 108,000 km of surfaced roads. The present paralysis of the rail system in Nigeria has made road transport the only effective means of conveying heavy goods from one point to another within the country. The population is dense and the environment is good. This explains why the road haulage business is one of the most lucrative businesses to begin in Nigeria today.

For the remaining part of this business plan, including the detailed financial analysis, call any of our business plan consultants on 08122230861 or send me an email at chibuezemicah e @gmail. com .

Step On How To Start A Logistics And Haulage Business In Nigeria.

Below Is A Step By Step Guide To Starting Your Own Logistics / Haulage Business In Nigeria

Haulage Business

Haulage and logistics imply the transportation of products from one location in the nation to another. Haulage and logistics also include cross-border operations. It is a business that involves the moving and hauling of commercial goods.

Haulage and logistics services are rendered utilizing vehicles that are fit for lifting large amounts of goods or merchandise at once. Such vehicles are tankers, trailers, cranes, tippers, trucks, and so on.

Economic Impact and Importance of Haulage and Logistics Business in Nigeria

Haulage and logistics include the development of products by both rail and street. However, since the crumple of the rail transport network in Nigeria, street haulage and logistics have led the pace. The nation has enough populace and a decent system of streets

Transportation and distribution network is a vital part of the economy and any serious business. It affects the advancement as well as the welfare of the immense population in Nigeria of around 200 million. Any business looking to strive and deliver customer satisfaction need a good distribution network for their business.

Steps To Start A Haulage And Logistics Business In Nigeria

Choose a Niche in the Trucking Industry: To succeed in the Haulage industry, you must select a niche, because it is very broad. There are different niches in haulage business and the niche you choose would determine the type of vehicles you would need and you start – up costs. In choosing a niche, some questions must be answered. Questions like, what kind of product do I want to transport (solid, liquid, or gas)? Who is my target audience? Do I want to engage the service of other drivers? Can I travel on a particular route? e.t.c. As soon as you can settle this, deciding on the transport system and mode of operation becomes easy.
Your Capital For the trucking business, you need capital and lots of it. Your start-up capital will largely depend on the number of the fleet, you are intending to own. It is therefore important that you write a business plan and have a clear idea of how much, you would need to start the business and weigh your savings to see if you can afford it. If you do not have enough capital to start you might want to watch my video where i show you where to source for funds for your Haulage and Logistics Business in Nigeria , you have to consider first your credit worthiness and eligibility for borrowed funding… You might also need to have some kind of collacteral unless you are looking to apply for grants
Create A Business Plan For every business you want to start, there is no substitute for a business plan . A business plan is the documentation of everything that validates the operation of the business. It includes the vision, mission, objectives, goal, financial plan, market research, and product, e.t.c In creating a haulage business plan in Nigeria, you will need to list the total capital you need and conduct a financial analysis of everything required for the business. At this point, you will know if you can afford the cost of starting and running the business. Otherwise, with the business plan, you can pitch your business idea to financiers and investors. That’s one of the reasons a business plan is very important.

4. Register Your Business

When you think about starting a business in Nigeria, you should also consider registering your business. Business registrations are done with Corporate Affairs Commission (CAC). All you need is to choose a unique and catchy business name relating to the service you want to offer. Then, decide if you want to do a sole proprietor registration or a limited liability company and follow the due process.

Doing a business registration can be a bit tasking especially if you do not know how it works, that is why companies like NaijaCEO exist. ReDahlia can guide you through the process and make it happen in the shortest possible time.

5. Rules and Regulations For starting the haulage business, another important factor that has to be given serious consideration is the legal requirements. You would be required to obtain various licenses and permits and you would also be presented with a set of rules and regulations that must be adhered to. Extensive research should also be conducted on what these rules are and adherence to them has to be ensured.

6. Insurance :

Just like in every business risks are also involved in the Haulage business. You would be dealing with expensive goods which do not belong to you and would have to be conveyed to their destination safely. Putting the fact that you would be travelling over long distances to deliver those goods into consideration, it is rarely possible to predict the things that may or may not happen along the way.

7. Employees and Management ; You have to think about the drivers first because use they are the life wires of haulage business? You need to find professional drivers who would be interested in working with you to promote the business because your driver can make or mar your business. After the drivers, you must think of the marketing and administrative staff too. If your plan is to start a small-sized haulage business, you may be able to handle the administrative and marketing functions yourself but for a larger sized company, you may have to employ staff to support with Management, administrative and clerical duties as well as marketing and promoting the business.

8. Maintenance : Maintenance issues will come up at a certain point, and when they do, you would need the right maintenance services to put the vehicle back in order again. You would need a very good mechanic to handle repairs of your vehicle. This is necessary because the level of maintenance and quality of servicing your car receive would go a long way to promote the life span of your vehicles. You should find competent automobile repair companies or technicians who can handle the repairs of your vehicles.

9. Business Operation

Once the capital and other aspect are settled, you will need to decide on a mode of operation.

The following three major areas are to be considered as a mode of operation in the haulage business. They are Independent, Contractor/Sub-Contractor and Leasing.

How To Maintain Your Logistics And Haulage Business In Nigeria

Like other businesses in Nigeria, there are downsides to the haulage business. For the truck business, your challenge can be a bad road network, dishonest drivers, lack of truck maintenance, e.t.c

But For the truck, find out the engine capacity in line with the weight of the goods it can carry. I advise you to stick to a certain number of goods and containers so you don’t outweigh the flatbed of your truck and reduce the lifespan don’t hesitate to do weekly maintenance for your trucks.

Although bad roads can cause unnecessary wear and tear to the truck, a good driver will know how to handle the truck and make the damage minimal.

I also advise you to come up with a unique value proposition for your business, good Logo and branding, this will help you stand out from the crowd.

Challenges of starting a Logistics and Haulage Business in Nigeria

They include difficulty in obtaining legal haulage documentation, bottlenecks, corruption and bribery. Others are poor state of the roads, bad trucks, dishonest drivers, inexperienced mechanics and highway robbers.

Obtianing Legal Haulage documentation
illegal minor taxes
Highway robbers
Inadequate moto spare parts

How Big Is The Haulage Market?

Haulage business is connected almost anything touchable and movable from sands, to goods, building materials, farm products, home appliances etc. This means that if you take a look at your surroundings, you will likely realize that 90% of the things around you got to where they are by means of one Haulage service to another.

The opportunity is there to tap and make good money from Nigeria and only the fast movers will make the most cash. Take action now!

This shows you why and How Lucrative the Logistics and Haulage Business is in Nigeria…

Ready To Start Your Haulage And Logistics Business In Nigeria Or Africa?

Maybe you dream of opening your own Logistics and Haulage Business In Nigeria , but you’re still working out the details on how to make that dream a reality.

Well we are the leading Business consulting firm in Nigeria and can help you make the process much easier contact us with 08122230861

Get your Logistics and Haulage Business Plan in Nigeria PDF document Now!

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Micah Erumaka

About Micah Erumaka

Micah Erumaka is the Founder of LiaonCEM solutions which owns NaijaCEO. He is an Internet Entrepreneur and a content creator. After the failure of his first company at age 18 he started NaijaCEO to help entrepreneurs with the information they need in operating a successful business in Africa

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Haulage Business Plan In Nigeria (2024 Sample)

Haulage Business Plan In Nigeria 2024 PDF Sample

Haulage business also known as logistic business by many is not that a popular business that you fins people engaging in or investing in every time , however, haulage business is one of the most lucrative businesses out there in the Nigerian business environment .

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The business comes with option of expansion although massive investment is required, as in the business is capital intensive, one things is for sure that you are likely to get the returns of your investments. on this post haulage business plan in Nigeria, the aim is to educate you on the basic information you will need if you have interest in starting up your own haulage business in Nigeria.

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For those asking questions on how to start haulage business in Nigeria, here is your answer. One peculiar thing about this business is that operation as well as other important modalities in trucking business are universal, country or location doesn’t change its similarities.

The aim of this post is to also highlight some of the factor you have to consider before going ahead with setting up of the business. These steps will suggest to you if you will actually be successful or if you will not do well.

We’ll also discuss other money making methods that will benefit you, the truth us the business is only lucrative if you know the right things to do, also the factors that will be listed will also be some kind of guide if your want to write your own business plan or things you should likely look out for in a business plan.

How To Start Haulage And Trucking Business In Nigeria

There are numerous steps or maybe factor you should probably consider before going ahead with plans of setting up a haulage and trucking or logistics business in Nigeria, these steps can be adopted by anyone as long as you are ready for the challenges that comes with it.

Get A Business Plan – This business is capital intensive first and foremost, that simply means you don’t want to go into the business without any kind of preparation or plan, you should have a ready made plan with you, it makes things a lot easier for you. You plan tells you the capital to invest, your location, your route, truck and vehicle types, how many you will need for start up, number of personnel to employ etc. your business plan should be able to outline these features of the business, you have different options for your feasibility, either you write the business plan yourself, hire an expert to write for you or you can buy from us, Our haulage business plan in Nigeria is well written, and it includes financial projections, you can use it to apply for loans and grants as well as use it for your business proposals.

Location – This aspect of the business must be included in your business plan, it is so for a reason, you must site your business in a location or state where your trucking business can blossom. States such as Lagos and Port Hacourt are premium location to explore. A good location is a guarantee or getting businesses constantly.

Raise Capital – Earlier, I mentioned that haulage and trucking or logistics business is a capital intensive business; this simply means that you will have to invest a whole lot of money for starting. however, I also highlighted that you can raise capital using our haulage business plan in Nigeria to apply for grants as well as banks loans , given that we also included a financial projection, it gives an idea on the amount to invest as well as the amount to use in sustaining the business, rising your capital is the most among other things or factors that must be considered before starting your business.

Market Research – This is very important, it gives you an idea on who your customers are, how they want to be served, the preferred communication methods, you also get to know who your competitions are, this gives you a bit of knowledge on how to analyse them and use the results from your analysis to your advantage.

Create A Personal Goodwill – Every new business needs this the most, you need customers as well as potential customers to trust you could deliver on promises, this goodwill shouldn’t stop with your, also extend it to your staff members, dishonesty and disloyalty among staff members can ruin your business and hard work. Customers as well as potential customers must view your business as one that has integrity.

Specify Your Services – On your business plan , you should be able to outline what your operation will be like. there are several niche when it comes to haulage and trucking business, every niche has its different type of vehicle needed, hence it is important to know the niche you want to operate from, there are options to outsource your trucks to other companies, you can chose to either go on a long distance transport or opt for a short distance transport, you should also know the kind of goods you will be transporting, these and more should be in your book while selecting.

Business Registration – This covers for a whole lot of other factors, as one of the rules and regulations guiding haulage and trucking business, it is important to have a legal approval, get required licensees, and complete every registration. This will help you when you finally start your business, as you won’t be faced with any kind of embarrassment.

Type Of Equipment Needed – To successfully kick off your Haulage & Trucking/Logistics Business Plan in Nigeria, you need to get in your heavy machinery. These equipment forms the bases of your business operation, here are the types of equipment you’ll need;

Flatbed trailers
Heavy duty machinery
Big containers
Silos etc…..

These equipment are really important, since what will be transported are heavy goods.

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How To Start A Haulage Business In Nigeria

Entrepreneurs.ng
May 13, 2020

The demand for haulage services keeps increasing despite the number of haulage business companies in Nigeria. This is as a result of many business activities requiring logistic solutions of moving items from producers to consumers or sellers to buyers.

Unlike before when customers wait for days, weeks, or months before their goods arrive, the narrative is changing, and the relevance of the industry is becoming more and more appreciated.

Today, the haulage and logistic business have become a lucrative area to venture in simply because virtually most business activities requires hauling services of different kinds.

Start Your Business in 30 Days Even If You Don't Have An Idea

See Also: 14 Small Business Ideas For Entrepreneurs In Lagos

Haulage Business

Haulage is the process of transporting goods from one location to another by road or rail with the use of a truck, train, tipper, trailer, van, lorry, bus, car motorcycle e.t.c. It is a business that involves the moving and hauling of commercial goods.

Tangible items such as furniture, farm products, home appliance, building materials, natural resources, crude oil, machines, equipment e.t.c. are the products. Simply, anything movable can be hauled.

In Nigeria, several businesses and individuals employ the service of haulage companies to move their items from production locations to consumers, showrooms, retailers, and distributors.

In other words, it has become one of the most effective ways of conveying goods from one destination to another. And this explains why it is a lucrative business area in Nigeria.

See Also: Home Business Ideas – 10 Profitable Home Business Ideas To Invest In

Create A Niche

Hauling business is a wide business area involving crude oil, building materials, food products, medical kits, gravel and stones, e.t.c. To operate effectively, there is a need to carve a niche for yourself. The niche you choose will determine the startup cost, vehicle specification, and type of clients.

In choosing a niche, some questions must be answered. Questions like, what kind of product do I want to transport (solid, liquid, or gas)? Who is my target audience? Do I want to engage the service of other drivers? Can I travel on a particular route? e.t.c. As soon as you can settle this, deciding on the transport system and mode of operation becomes easy.

Aside transporting consumer goods, raw materials, and other natural resources, you can also engage in transporting for homes (helping them move from one home to another), small producing companies, and traders.

Also, you can venture into cement, granite, iron, imported goods, agricultural products, FMCG, home appliances, stationery, solid minerals e.t.c.

Once you can decide on a niche, you can then follow the steps we are going to highlight here to start your haulage business.

The cost of starting the haulage business

Step By Steps Plan On Haulage Business

Create a business plan.

Go from idea to starting your business in 30 days

For every business you want to start, there is no substitute for a business plan . A business plan is the documentation of everything that validates the operation of the business. It includes the vision, mission, objectives, goal, financial plan, market research, and product, e.t.c

In creating a haulage business plan, you will need to list the total capital you need and conduct a financial analysis of everything required for the business. At this point, you will know if you can afford the cost of starting and running the business. Otherwise, with the business plan, you can pitch your business idea to financiers and investors. That’s one of the reasons a business plan is very important.

See Also: Printing Business – Comprehensive Guide On How To Start Printing Business

Register Your Business

However, I understand that doing a business registration can be a bit tasking especially if you do not know how it works, that is why companies like ReDahlia exist. ReDahlia can guide you through the process and make it happen in the shortest possible time.

See Also: How To Start Bottled Water Or Pure Water Business In Nigeria

Fulfill Regulatory Requirements

Aside from business registration, haulage businesses need to fulfill certain legal requirements like tax and insurance . Also, you will need to obtain licenses for the vehicles, drivers, and other permits that are required to operate the business.

More so, due to the bad road network, it is advisable to insure the vehicles for operation as soon as they are purchased to reduce the risk of loss in case of accident or theft. So, ensure to find out different insurance policies that can be done for the business.

See Also: E-Commerce Business – How To Start An E-Commerce Business In Nigeria

Haulage business is capital intensive due to startup cost, running cost, and vehicle maintenance. Your star-up capital will determine the kind and number of vehicle you can afford. So, the capital will tell if you can afford a new truck or a fairly used truck.

If you don’t have the capital, you can look out for partners who are interested in the business and can finance it. Also, with your business plan, you can approach commercial banks , Microfinance banks, angel investors or friends and families for loans and support.

Just ensure the funds comes with a good interest rate and flexible payment plan so you don’t end up servicing the loan for donkey years.

See Also: How To Start A Cleaning Service Company In Nigeria

Business Operation

Once the capital is settled, you will need to decide on a mode of operation. The following three major areas are to be considered as a mode of operation in the haulage business. They are Independent, Contractor/Sub-Contractor, and Leasing.

Independent Haulage Company

An Independent haulage company that solely operates and directs the affairs of itself. They employ drivers, source for customers and clients, carry out their services, e.t.c, and manage the entire affairs of hauling.

For instance, you can haul products for telecommunication companies, oil, and gas, fast-moving consumer goods companies, or any other kinds of clients you wish to serve. Here, you are responsible for everything that has to do with the daily management of the business.

However, this area can be a bit tough because you have to be credible to earn job contracts.

See Also: How To Start A Poultry Farming Business In Nigeria

Contractor/Sub-contractor

Here, you will partner with a company that will be in charge of your trucks and drivers and pays you a percentage of the money made at a stipulated time.

As a contractor, as long as you set up your business properly, you can sit back and earn money at the end of the month while your truck do the job.

However, you might be subjected to certain terms and conditions by the company you are registering with.

Leasing Trucks To An Haulage Company

This involves leasing your truck to a company for hauling services. It requires handing over the truck and receiving a percentage of profit as agreed. It is similar to a contractor or subcontractor model just that you may be responsible for servicing your truck.

Depending on your financial capacity, you can decide on which one works best, or perhaps choose based on passion and your long term vision for the business.

See Also: How To Start Mini Importation Business In Nigeria

Full business in hauling begins with the purchase of trucks, trailers, or heavy-duty transport vehicles.

You can consider buying a brand new trailer that cost about 10 to 20 million naira or a fairly used one at about 6-8 million naira. Aside from that, you can buy the parts differently and employ mechanics to refurbish it.

While buying trucks ensure it is maneuverable, easy to maintain, and does not consume too much fuel.

See Also: How To Start An Export Business In Nigeria

Staff The Business

Hauling business needs a certain number of human resources to effectively operate. Therefore, you need to wisely recruit them as they may make or mar the business especially the drivers. Aside from truck drivers, you need marketing and administrative staff with excellent communication skills.

Remember, the overall success of your business is largely dependent on your kind of drivers. You can’t afford to hire terrible drivers who deal in illegal activities or abuse drugs. Their bad conduct can create disasters like accident and can jeopardize the business and the brand you are building if you make a wrong choice.

See Also: Top Legal Documents Every Entrepreneur And Start-Up Should Have

Source For Customers

Since you narrowed down to a niche, you can easily identify clients and understand their needs. For instance, if you intend hauling fast-moving consumer goods (FMCG), start by writing down a list of companies that produce consumer goods. Then, devise a strategy to reach out to them.

Be sure to present yourself well in a way that you can be perceived as credible and reliable. Once you get a contract, deliver on your promises. And finally, develop a strategy to retain existing clients and plans on how to get new ones.

See Also: How To Stay Motivated When Things Get Tough And Stressful.

Deliver Service

Owning to the number of hauling companies in Nigeria today, you sure have to stand out by delivering quality services. Ensure that customers’ goods are delivered on time as agreed.

Also, make sure the goods are delivered as packaged in good conditions without stories of missing items. If you fail once, you are likely going to damage your reputation.

How To Maintain Haulage Business Company

Like other businesses in Nigeria, there are downsides and risks. For the truck business, your challenge can be a bad road network, dishonest drivers, lack of truck maintenance, e.t.c

For the truck, find out the engine capacity in line with the weight of the goods it can carry. It is advisable to stick to a certain number of goods and containers so you don’t outweigh the flatbed of your truck and reduce the lifespan.

Also, in case the vehicle breaks down, get professional mechanics who can properly maintain the vehicles. If you treat your truck like a business, you will ensure it is properly maintained. Most businesses have a poor maintenance culture which finally translate to penny-wise pound foolish.

Although bad roads can cause unnecessary wear and tear to the truck, a good driver will know how to handle the truck and make the damage minimal.

In addition, create a unique logo that conveys the brand message. Several people tend to remember a company with a unique logo. Also, build an online profile by creating a website and social media pages. All of these platforms must exclusively talk about your hauling company and service offering.

Additionally, you can invest in billboards, radio, and television advertising. Give your clients a good experience and they will be foot soldiers, evangelising your service.

The haulage business is a capital intensive and risky business, but the reward is worth the work. To succeed, you have to structure the business, deliver quality service, and employ a good management strategy.

Now that you know everything about the haulage business, it is time to start. Goodluck.

We will like to hear your thoughts in the comments if you are in the haulage business or working towards starting one.

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How to Start a Profitable Haulage Business in Nigeria: A Step-by-Step Guide

by SME Guide

The haulage industry in Nigeria is a lucrative business opportunity for entrepreneurs, considering the country’s importance as a regional trading hub. With the right planning and execution, building a profitable haulage company in Nigeria is an achievable goal.

This step-by-step guide takes you through the key things you need to know and do to start a successful haulage business in Nigeria.

Conduct market research on the haulage industry in Nigeria.

Before starting your haulage company, take time to understand the industry, competitors, and growth opportunities. Research should cover:

Size of the haulage industry in Nigeria: number and types of companies, fleet sizes, annual revenues, etc. Useful data sources include the National Bureau of Statistics, the National Association of Road Transport Owners (NARTO), and other industry reports.
Types of goods transported: bulk commodities, packaged foods, industrial goods, petroleum products, etc. Know the major goods you can carry.
Key industry players: research existing haulage companies to understand their business models, services, strengths, and weaknesses.
Growth drivers: factors propelling demand for haulage like trade volumes, industrial growth, infrastructure projects, etc.
Routes and destinations: major origins and destinations for goods transported within Nigeria and cross-border This influences fleet size and mix.
Industry costs: fuel, maintenance, vehicle purchase or lease, staff, licensing and regulatory costs, etc. This helps you adequately budget and price services.
Challenges: reputation of operating a haulage business in Nigeria, safety issues, cost and ease of fleet acquisition, etc.

Determine the legal business structure.

The legal structure you choose for your haulage company has implications for liability, taxation, and operations. Common options include:

Sole proprietorship: easy to set up, but the owner has unlimited liability.
Partnership: shared capital and liability by partners. A partnership deed is required.
Limited liability company (LLC): hybrid of sole proprietorship and corporation Liability is limited to shareholder stakes.
A private limited company is a separate legal entity from its owners. requires a minimum share capital of N10 million (with tax incentives). Most appropriate for large haulage companies.
Cooperative: Members jointly own the business. It is useful for pooling small capital contributions.

Consider professional legal advice when choosing your business structure.

Choose a unique brand name and logo.

Develop a unique name and logo that resonates with your target clients. Check the availability of the preferred business name first at the Corporate Affairs Commission (CAC) .

Carry out a trademark search to ensure your chosen name does not infringe on existing trademarks. Engage a professional graphic designer for an eye-catching logo.

Register the business with the CAC to acquire a certificate of incorporation and RC number. Key documents needed include:

Completed company registration forms
Memorandum and Articles of Association
Evidence of a lease or rent for the company address
Photographs of directors
Required registration fees

Apply for Relevant Permits and Licenses

To legally operate as a haulage company in Nigeria, you need to obtain the necessary permits, licenses, and regulatory approvals, including:

Business premises permit: from the state government where your office is located
Haulage operator license, issued by the Federal Ministry of Transport
Waste carriage license (for waste haulage): Issued by state waste management authorities
Signage permit: for erecting the company name or branding on the office and yard
Taxpayer Identification Number (TIN): From the Federal Inland Revenue Service (FIRS)
Radio license: for two-way communication gadgets from the National Broadcasting Commission (NBC)

Fund Your Haulage Business

A significant capital outlay is required to purchase or lease trucks and develop operational infrastructure for your haulage company. Explore financing options like:

Personal savings: Use your personal funds or sell assets to raise capital.
Loans: Obtain haulage equipment loans from commercial banks, microfinance banks, or cooperative societies.
Investors: Bring on board private investors and business partners to pool capital.
Grant funding: Some government agencies provide grants for transport companies.
Crowdfunding: Use online crowdfunding platforms to raise funds from multiple individuals.

Acquire trucks and operational assets.

A key startup task is building your haulage fleet and acquiring operational assets like:

Trucks: Tipper trucks, tankers, flatbed trailers, etc., depending on the loads to be carried. Consider purchasing quality used or new trucks.
Warehouse: for product storage and truck parking and loading.
Workshop: For maintaining and repairing your trucks. Alternatively, partner with repair garages.
Office space: main administrative office and branches across your coverage locations.
Loading and unloading equipment (forklifts, pallet trucks, cranes, etc.) according to the goods transported
Fuelling station: onsite or tie up with major fuel stations along your routes.
ICT infrastructure: computers, dispatch software, GPS, dash cams, etc.

Recruit competent drivers and staff.

Building a team of experienced, safety-conscious drivers and staff is crucial. Important roles to fill include:

Drivers: Recruit Class E (truck) licensed drivers with defensive driving skills and training. Conduct background verification.
Mechanics: Hire competent technicians for truck maintenance and repair.
HR manager: to handle recruiting, training, and employee administration.
Dispatch manager: manages truck fleet scheduling and routing.
Accountant: handles bookkeeping, cash flows, and financial reporting.
Sales executive: drives customer acquisition and revenue growth.

Implement robust safety, maintenance, and operating procedures.

Institute stringent safety and truck maintenance protocols, including:

Safety training: regular training for drivers on safe driving, accident prevention, vehicle inspection, load security, etc. in line with FRSC regulations
Maintenance program: Schedule routine servicing, repairs, and part replacements based on mileage.
Truck inspection: daily pre-trip checks by drivers covering tires, lights, brakes, etc.
Loading procedures: a system for proper loading and unloading, weight distribution, and securing different cargo. Train warehouse staff.
Operating procedures: detailed truck allocation, trip scheduling, fuelling, documentation, etc.
ICT systems: Install GPS, dash cams, temperature monitors, etc. for monitoring trucks on the go.

Obtain relevant insurance policies.

Safeguard your haulage business from losses by acquiring adequate insurance covering:

Goods in transit cover damage or loss of customers’ cargo.
Trucks: Insure vehicles against accidents, damage, and theft. Include comprehensive motor insurance.
Employees: workers’ compensation and medical insurance as required by law.
Public liability: protects against liability claims for third-party losses caused by your trucks or staff.
Office contents: insure items in your office against perils like fire and burglary.
Directors and officers: shield directors against claims directly associated with their decisions and actions taken in the course of duty.

Develop strategic business partnerships.

Form strategic partnerships that give your haulage company an edge, including:

Haulage cooperatives: Join relevant associations and unions like NARTO to benefit from collective bargaining, staff training, and industry advocacy.
Warehousing: Partner with major warehouses along your routes for easier load consolidation.
Fuel distributors: negotiate discount supply agreements with petrol stations and depots.
Truck manufacturers: Get discounts on new truck purchases in exchange for loyalty or large orders.
Fleet maintenance: Form preferred provider relationships with competent repair workshops.

Market Your Haulage Services

A marketing strategy is necessary for attracting customers. Tactics include:

Sales team: deploy personnel to scout for clients along your routes and at industry events. Offer free quotations.
Digital marketing: Create a professional website showcasing your services. Actively promote it via SEO, PPC, and social media.
Radio advertisements: Run advertisements on local radio stations highlighting your competitive rates and advantages.
Sales collateral: Create company brochures, flyers, and catalogues detailing your haulage capabilities, trucks, safety records, etc. Mail or distribute to prospective clients.
Referrals: Request satisfied customers to recommend your services. Incentivize referrals with discounts.

Set competitive haulage rates.

Carry out a cost analysis of your fleet operations to determine a profitable haulage pricing model, factoring in:

Operational costs: fuel, driver fees, truck maintenance, licensing fees, insurance, etc.
Administrative costs: salaries, office rent and supplies, ICT expenses, etc.
Desired profit margins
Competitor pricing: research the prevailing haulage rates in Nigeria for different load types and destinations.

Some pricing strategies include cost-plus, value-based, or competitive rate models. Offer discounts for bulk or regular customers.

Manage Finances and Cash Flows

Robust financial controls are key to business profitability and sustainability. Ensure diligent:

Accounting: Use accounting software to record income, expenses, asset depreciation, taxes, etc. Prepare financial statements.
Budgeting: Make annual and operating budgets. Review periodically and adjust.
Cash flow planning: track cash inflows from customers and cash outflows. Maintain optimal liquidity at all times.
Auditing: Conduct annual external audits to identify risks, ensure compliance, and promote transparency in financial reporting.

Comply with relevant regulations.

Operate in accordance with transport, tax, labour, and other regulations, including:

Haulage operator standards: adhere to stipulated safety, truck conditions, driver competency rules, etc.
Axle load limits: observe prescribed limits based on vehicle type to avoid overloading.
Freight documentation: Ensure proper cargo manifests, invoices, and customs forms for every trip or shipment.
Licensing requirements: keep licenses and permits valid and up-to-date.
Labor laws: comply with employment contracts, minimum wage, social security contributions, etc.
Environmental: avoid oil leakage, safe waste disposal, etc. Get the necessary permits where required.

Staying Profitable Over the Long Term

Sustain profitability by:

Expanding your fleet: Grow based on demand to benefit from economies of scale.
Diversifying services: Move beyond haulage to offer clearing, storage, freight forwarding, etc.
Entering new routes: widen your network as opportunity allows.
Technology adoption: Progressively automate operations using haulage software and equipment.
Cost optimization: Regularly review expenditures to identify savings opportunities.
Excellent service: Focus obsessively on client satisfaction to support retention and referrals.

By meticulously executing the key steps above, entrepreneurs can establish and grow a thriving haulage company in Nigeria. Be adaptive as the business landscape evolves.

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3 thoughts on “How to Start a Profitable Haulage Business in Nigeria: A Step-by-Step Guide”

Pingback: 100 Profitable Business Ideas to Start in Nigeria - SME Guide

i thought of venturing in haulage business.

Yea, that’s a great thought. Just ensure you get all the information you require about haulage business and choose the specific area you want to major and go ahead and start. Congratulations in advance.

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Business Plan

Haulage Business Plan in Nigeria – Feasibility Study on Haulage Business

by BusinessPlan 1 Comment

The haulage business which is also referred to as the logistic business is one of the most lucrative businesses in Nigeria presently, even though a lot of people do not maximize the opportunity of this business because of the supposed capital intensive nature as well as the risk involved. This article looks at providing you with basic information necessary for starting up your own haulage business and a giving you a sample haulage business plan in Nigeria to bootleg you. It should be relevant even if you are not planning to start up your business in Nigeria since the modalities of the trucking industry all over the world are quite similar.

buy your haulage business plan in nigeria

Also Read: Travel Agency Business Plan in Nigeria (Feasibility Study & Complete Guide)

Easy steps on how to start a haulage / trucking business in nigeria..

Write your business plan: Before you venture into the logistics business, you should have a detailed plan covering the following; how much capital you have, which state or area to site your business, what kind of goods do you intend to move from place to place, the type of vehicle(s) you need, what your rates should be, staff, etc. These features can be found in a business plan. Take sometime out to do a feasibility study and then write a comprehensive business plan for your business. If you do not have the skills to do so, you can order our haulage business plan in Nigeria. Our business plan can be used for accessing grants, bank loans and bringing in investors.

To order the haulage business plan in Nigeria, pay N10, 000 to:

BANK NAME: FIRST BANK PLC

ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 3066880122

After payment, text your full name, email address and title (haulage business plan pdf) to 07033378184. Your business plan will be sent to your email within 15 minutes.

Work on your personality . Before venturing into this business, it very important to check your personality and be sure it matches the profile of one who is able to run the business. The best or most successful business owners are those who venture into the business not just for the monetary returns but majorly for the passion they have for it. It is the passion that one has that helps such a person withstand the various challenges that are bound to arise all through the lifecycle of the business. In case you feel your personality does not match what you believe is a profile of someone to run this kind of business, it is no reason to give up. You can work on yourself to ensure that you develop the characteristics of a successful haulage business owner. You will need great determination and resilience to run this business as there are several challenges to deal with like shady mechanisms, accidents, dishonest and disloyal staff, etc.

Choose your niche . This step is very important when planning to venture into the business because the outlay of the business the very large. There are several aspects of the business and it is not advisable to just dive in trying to indulge in all aspects, it might be too cumbersome and result in loss ultimately. The part of the business you decide to venture into will determine the kind of vehicles you will procure for the running of your business. There are few questions you should ask yourself that will help you come to a conclusion, a few of them include:

Will you be involved in long distance or short distance transport?
Will you be involved in transporting goods on a bulk basis or will you prefer leasing your vehicles to other transport companies?
Will you rather outsource your trucks to a trucking company or will you put them up for hire purchase?
If you have chosen to transport bulk goods, will you be transporting liquids or solids?

Answering these questions and many others will help in making your decision and thus help in procuring the right vehicles and carrying out the right registration processes.

Raising your startup capital . This is one of the major reasons people stay off this business, there is no doubt that to run a haulage business you will require a huge amount of capital especially for startup. The capital outlay required will largely depend on the niche you have decided upon and how many vehicles you are planning to have as part of your company. For the capital outlay to be adequately forecasted, it is imperative that a business plan is firstly written. The business plan helps to state in almost exact terms what the business should look like, how much is needed to start it, the management plan, the profitability, the vision and mission statement of the company and a projection of the profits to be made, including the break even analysis. This assists the business owner to raise capital from different quarters like external investors, banks, family members and friends. The business owner should also decide if the vehicles to be bought will be purchased as new or used as well as whether they will be paid for outright or be purchased over a period of time. Most times the business owner might not have the total financial capacity to startup the business but sourcing from loans from different quarters can be of tremendous help.

Financing your haulage business . There are always a set of people known as financiers who are available to help finance any business, they have the financial capacity but usually do not have the ideas so they assist businesses in startup and by so doing make their own fair share of profit. The most popular form of financing is known as “leasing” and it usually involves two parties, the “lesser” and the “lessee.” The lessee who is the user of the equipment remits a periodic compensation which could be in form of rent to the lesser. There are two major forms of lease which are “finance lease” and “operating lease.”

Finance lease, which is the most popular form all over the world, entails that all the risks and benefits of ownership are taken by the lessee. The lesser however still retains title to the equipment even though on the long run it may eventually be transferred.

Operating lease is somewhat the opposite of finance lease. It entails that the lesser retains the risks and rewards of the equipment and this usually comes to play when short term line of vehicles such as cars, trucks, trailers, boats are involved. A major advantage of leasing is that it affords the lessee the opportunity of paying for goods procured over a long period of time.

Rules and regulations guiding the business . A very important factor that should be considered should be the legal regulations guiding the business. It is important to be covered on all fronts to avoid uncalled for embarrassments. To run this business you will be required to sort out several registration procedures, obtain necessary licenses, as well follow the particular laid down rules for the business. It is expedient that you as a prospective business owner take time to carry out in depth research to find out all of these and ensure that you push yourself to satisfy all the requirements before startup.

Insurance . As stated over and over in this article the haulage business is one that is full of risks and challenges, most of which are not planned for. All through the business lifecycle you will be dealing with goods and mechanisms that cost a whole of money. Along the way there will be eventualities, some which include accidents, theft, dishonest staff, and lots more. Not being adequately prepared for this could mean the business owner running into huge debts should any of them occur. This is the major reason for insurance, it is protection made against future unwanted risks.

Develop an efficient management strategy . Setting up an efficient management team is key to the growth and continuity of any business. If you are lacking in experience relating to the haulage sector, it is important to recruit a manager that has a couple of years in terms of experience so you do not run at loss on the long run. You also need efficient drivers who come highly recommended for credibility and accountants who are up to the task. No loophole should be left for a lapse in management as a business is only as good as its management system.

Customer services and relations . The first step to this is knowing who your clients are, understanding them and their present needs, being able to predict the needs they want to satisfy in the nearest future and working to fix all of them. To achieve this you will need to have set out a niche for yourself and then make a list of all the prospective customers that fall within that category. You will need to seek out a way to reach out to these customers and set up a channel for efficient feedback. You must be top notch in your approach to customer care, ensure that your staff are well trained to relate with customers properly. Ensure that you put forth your brand in a very strong manner while ensuring that you create measures to help you ward off any competitors.

Sorting out issues with maintenance . Since you are dealing with highly mechanical equipment you can be sure that once in a while you will be required to carry out maintenance procedures to ensure they are in good condition for your business. You should seek out a good mechanical company that are reputed for being meticulous with their jobs, work out a contract with them for the maintenance of your vehicles. You can opt for employing a couple of in house mechanics on the other hand if you have a fleet of vehicles, this will help to save money to large extent.

Ways to earn money in haulage business

There are three major ways of making money in the haulage business in Nigeria, as we know it, the business is very lucrative and it can yield great amounts of returns to the business owners. The amount of profit you will be raking in will mostly depend on what aspect you decide to indulge in, the different ways of making money in the haulage business are discussed briefly below:

Working as an independent contractor . This involves registering your business to own its own vehicles, employing drivers, mechanics and other staff, seeking for contracts from prospective customers. This aspect of the business is largely regarded as the riskiest of all. You might however be competing a lot of other big transporters for contracts and on some jobs you may be required to work in conjunction with some of these other companies. Though this aspect seems to be the most lucrative because of the profits involved, it is the most strenuous and it requires a very huge capital outlay.
Leasing your trucks to a haulage company . This basically entails sub-leasing your trucks to other haulage companies on a contractor or sub-contractor basis. This way the risks are reduced even though you do not get as much profit as the independent contractor.
Working as a sub-contractor . In this aspect, you will be working basically for just one company or client. This way the contracting client is in charge of handling all the risks and burdens of the business while you just get a stipulated amount of money at the end of each month or year, depending on the prescription of the agreement.

Major challenges of the haulage business

It is a recognizable fact that no business, no matter how lucrative, comes without challenges, the haulage business is not an exception. It has several challenges which may be major hindrances to the thriving of the business if not properly managed. A few of these challenges include:

Huge capital requirement.
The business is also highly management intensive.
Bad roads, these result in accidents and malfunction of most vehicles thus requiring more than the regular amount of maintenance.
Getting competent drivers.

In conclusion, the haulage business is one that can be tough to start up but it also provides a very enticing amount of yearly profits. Before indulging in the business be sure to have done your homework and be ready enough for all the pitfalls before they arise.

Get your own Sample haulage business plan in Nigeria ! To place order, Pay N10,000 to:

BANK NAME: GUARANTY TRUST BANK (GTB)

ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 0044056891

After payment, send your full name, email address and topic (i.e. Sample Haulage Business Plan pdf) to 07033378184. Your business plan will be sent to your email within 15 minutes.

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Haulage & Logistics Business Plan

Our Haulage & Logistics Business Plan in Nigeria is regularly updated, it can be used to access bank loans, proposal writing and grant applications. The business plan was complied after a thorough feasibility study on Haulage and Logistics Business in Nigeria was done

Haulage business otherwise known as trucking business is a very lucrative business. It is not very much popular because people view it as stress but there are profits in it. Haulage & Logistics business goes on roads and railways.

Our focus will be on road which happens to be the most available one as a result of the transportation of heavy goods.

Haulage vehicles includes trucks, flatbed trailers, heavy duty machinery, big containers and silos. These equipment focus on the transportation of heavy goods such as ores, wastes, supplies and coals.

Haulage means the transportation of goods from one place to another. These goods includes petroleum products such as: kerosene, engine oil, liquidized natural gas and so on. It also includes the transportation of sands and stones to the company sites. The advantage of this business is that it can be done in every country since there is always need for the transportation of heavy goods.

Haulage / Logistics Feasibility Study

This is important, write out the cost required for the business. This includes : how much do you have? Where do you intend to source for fund? Private or public individuals? How much do you need?

This includes feasibility studies on the market. Determining your location and competition. What skills do you have? If you don’t have, seek for skills or employ those who do. Knowledge is everything, it is the backbone of any business.

Purchase a truck

This is the second step, get a truck. Determine the type of truck you need. You can get either fairly used or new one. When getting the truck ensure to check these facts: high load capacity. One ton truck, half ton or three quarters ton truck.

It is important to get at least one ton truck, this is because it can carry heavy loads while half ton trucks can only go for local delivery. Also check the fuel efficiency. This is important, the fuel efficiency should be high, so that it doesn’t fail you in the middle of the road.

Register your business

This is very important. There are associations already on ground, so you must register your business and get permits in Corporate Affairs Commission.

Market your Haulage Business

This is a basic foundation, without marketing and advertising your business, you will get less customers.

Create a Reputation

A business reputation is very important. It is essential that your customers knows you for something unique and your availability and reliability should be high, this is because continuous failure to meet the target of your customers discourages them.

Determine your area of specialization

There are areas like: long distance /short distance. Bulky goods/light goods. Will you give your goods to a company or give it out for hire purchase?

Rules and regulations

Avoid debts.

This is important, don’t go borrowing money from bank with high risk of how to pay back.

Install security and tracking features in your vehicle

This is because of untrustworthy drivers who drive carelessly or go to other crooked business to make money for themselves. You simply know the distance that your vehicle is covering or the location of your vehicles.

Employ experience drivers

This is important, don’t employ amateur, this is because your vehicle is expensive and the good very expensive, so you cannot afford to risk accident as a result of inexperienced driver.

Motivate your drivers

This is crucial, your drivers should be motivated. You can give them tips or render praises to them and even increase their salaries.

This business is very risky, anything can happen. The vehicle can encounter accidents, dishonest drivers, theft and so on. It is important to plan for events beyond your control. Insure your vehicles.

Customer service

This involves knowing the customers needs and meeting them.

Maintenance of the vehicles

You can register in a reputable company that repairs vehicles.

Ways to earn money in Haulage / Logistics business

Independent operation

Here, you are solely in charge. You purchase the vehicles, maintain it, look for contracts, bear the risk and take the profits alone.

This involves placing your vehicles on a company. The company bears all the risk, look for contract and at the end of the agreed period, an agreed amount is paid to you.

This is almost the same with contractor but this time you deal directly with haulage company and not with company.

Challenges of Haulage Business

Capital intensive

Highly management intensive

Poor roads – This leads to accidents and breakdown of vehicles leading to high cost of maintenance.

Drivers habits – Most drivers are tricky. It is hard to find a honest driver. These drivers seek for ways to cheat at all time.

You need a minimum of five trucks. One truck alone is expensive, getting five is cash draining. Employing competent drivers.

This business is quite lucrative and also risky, it is important to research before taking a step so as not to fall into problems.

Our sample Haulage / Logistics Business Plan in Nigeria can be used to access bank loans, proposal writing and grant applications. The business plan was complied after a thorough feasibility study on Haulage / Logistics Business in Nigeria was done.

Get Your Haulage / Logistics Business Plan In Nigeria and Feasibility Study. To place an order, pay N10,000 to

GTBank (Guaranty Trust Bank)

Account Name – Uwadia Eyemeka

Account No – 0127561472

After payment text your name, send a text of your e-mail address to 07036785443 and you’ll receive your Haulage & Logistics Business Plan In Nigeria / Feasibility Study.

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06 May 2021

How to start a logistic and haulage business in nigeria .

HOW TO START A LOGISTIC AND HAULAGE BUSINESS IN NIGERIA

INTRODUCTION

Haulage/logistics refers to the transportation of goods/products from one location to another within a nation or across many nations. The haulage and logistic service is rendered using vehicles that are big and strong enough to lift large amount of items at once. These vehicles include: trucks, trains, tankers, trailers, cranes, and so on. A logistics company deals with everything from warehousing clients’ products to shipping them to remote locations.

Many modern businesses rely on logistics companies to help them manage their shipping and warehousing needs. Companies that specialize in this service handle a variety of different tasks for other businesses ranging from storing products to delivering them to their final destination. They often work with companies that are shipping goods overseas or that are shipping large items that require freight services.

The rise in e-commerce brought about by changes in technology has created opportunities for growth and expansion in sectors related to e-commerce such as logistics sector. Companies like Konga, Jiji, Jumia, Pointek are some of the online stores with strong online presence. E-commerce relies heavily on logistics to be successful as the goods ordered by customers online would have to be delivered to them at their various locations.

Logistics business has over time, being called many names such as door-step delivery service, bike delivery service, transportation service, dispatch rider business, among others. Logistics business involves the procurement, distribution, inventory, maintenance, replacement of personnel materials and information to achieve organizational goals. It involves getting products and services from a supplier or manufacturer to a consumer. Logistics may also apply to warehousing, transportation, inventory, packaging, material handling, disposal and security within the business sector. Logistics companies help many modern businesses to manage their shipping and warehousing needs. They handle a variety of different tasks for other businesses ranging from storing products to delivering them to their final destination. They often work with companies that are shipping goods overseas or that are shipping large items that require freight services.

Haulage business industry is large and basically involves the transportation of bulk goods or the leasing of trucks to haulage companies. One needs to decide on the mode of operation his business will have and what its focus would be.

THE ECONOMIC IMPORTANCE OF HAULAGE/LOGISTICS BUSINESS

Haulage involve transporting goods from one place to another. The transportation sector is key to the development of any nation. An improvement in the haulage/logistics businesses in Nigeria will lead to a growth or improvement in Nigeria’s transportation sector and ultimately to economic growth of Nigeria.

WHY SHOULD ONE VENTURE INTO LOGISTIC/HAULAGE BUSINESS?

Venturing into a logistics business is a good idea because there are huge profits in logistics business. However, you need to be well grounded in all aspects of the business and must deliver top notch service if you plan to survive in the industry. A company that fails to plan, study its business environment to quickly adapt to the changes that occur, offer value and understand its competitors will not survive in the long run no matter how profitable the industry is. Hence it is important to be at alert and ready to grab the opportunities that arise, minimize threats, improve on your strengths and reduce the weaknesses of your business so you can fully maximize the profit potential of the industry.

The haulage/logistics industry is one with a high potential for growth and continuous existence as the need for haulage/logistics services will always exist so long as man exists and goods need to be transported from place to place.

HOW TO START A LOGISTICS/HAULAGE BUSINESS IN NIGERIA

A lot of things have to be considered and put in place before one can venture into any type of business. Logistic/haulage business just like any other business requires some things to be put in place and planned for in order to succeed. The following are the necessary steps to take to start up a logistic/haulage business.

Source for Funds/Investment Capital

You need to source for funds that you will use to start up your logistic company. The haulage business requires huge capital and one may not be able to raise the money alone, you may need to look for investors. The amount of money that you need to obtain depends on the services that you plan on providing. For instance, if you are only going to act as a broker or provide basic freight management services, the capital you will need will not be as much as if you are going to become a full 3PL service. A detailed business plan would need to be prepared which clearly identifies the services that you plan on offering. This plan would assist you in your search for investors because they will need to understand what service your business offers, potential for profitability and growth before they can invest their money into it.

Obtain all necessary Licences

Your company needs to be properly licensed and registered in order to operate legally. The requirements for licensing differs from state to state. However, there are some basic similarities and requirements. You will need to get a business license, register your business with the Corporate Affairs Commission (CAC) and also fill tax forms with your state. You may want to employ the services of a lawyer to assist you in the registration of your business and obtaining your business licenses.

You need to file for a tax identification number with the tax office. Also, you may need to get registered to pay sales tax or use tax in your state.

Know your Competitors

It is important for you to research on and know your competitors. Keeping tabs on your competitors will make you to always be alert to their moves and even predict their next moves. This will help you to keep to your toes and always at your best. It can also bring about creativity and innovation. Any business that refuses to know its competitors and keep operating in isolation will end up folding up soonest because the competition is alert to his environment and is swift to effect changes.

Create a Business Plan

A business plan is a comprehensive document which states the goals and objectives of a business and how these goals and objectives would be achieved. A business plan serves as a guide to how you intend to accomplish your goals.

Drafting a business plan shows that you have a clearly defined goal and have plans on how to achieve these goals. It causes others to see what your long-term goals her and buy into it through the strategies you mapped out to achieve those goals. A business with a business plan can easily access funding from external parties, like government grants, loans etc. Many logistics company require huge capital especially if you want to operate on a large scale. You may be able to finance your business all by yourself at the initial stage but as time goes on there will be need for growth and expansion and that’s where you will need to seek outside investors. A business plan will enable you assess to various sources of finance.

A typical business plan would contain the following:

An overview of your Haulage business – The overview of your business plan can in the form of a tagline but would be more effective as a sentence describing what the company is actually into. The overview is known as the value proposition.
Executive Summary – The executive summary of a business plan introduces a company, gives background information of the company and explains the reason for existence of the company.
General description of the company – Here, you give a general description of the company and its industry.
SWOT analysis – SWOT analysis is a tool used to analyze the strengths, weaknesses, opportunities and threats of the company. Strengths and weaknesses are based on the resources the company has or does not have compared to its competitors. What can the competitors do better than the company? Opportunities and threats are related to the business environment the company operates. Opportunities are to be grabbed while threats are to be minimized.
Market Research – Here, you research the specific market the company is in or seeks to penetrate. In market research, you get information as to consumers’ preferences and expectations. You also gather information about your competitors : their strength, weakness,
Your Strategy – Strategy refers to how you plan to achieve your set objectives. The steps you plan to take towards achieving your goals.
The Team – Here, you give information about your team members.
A marketing plan – A marketing plan is an operational documents that outlines the advertising strategy your company plans to adopt in order to reach its target market.
An operational plan – An operational plan is very detailed and contains information about how each unit plans to contribute to the achievement of the entire company goals and objectives. Here, you outline the daily tasks/target that will be required by each unit in order to achieve the set goals.
Financial projection – To project means to estimate. Here, you make some forecasts/estimations about your business operations in the future (usually for five years). The essence of the financial projection is to see the expected profit and performance from the haulage business. You will need to prepare pro income statement, pro statement of cash flows, pro statement of financial position, pro loan repayment.
An appendix – All other relevant items that have not been discussed will come under the appendix
Get a Location for your Haulage Business

The haulage business is both online and offline business. Most transactions would be done online but some customers would prefer to come over to your office so you need to get an office space and keep the office well branded with your business name and your logo. Also the office space should be spacious enough to accommodate your cargo bikes and/or delivery vans.

Set up a website

To make your business more visible to customers, you need to create a website. Your website stands as an intermediary between you and your customers as that is the platform on which you both would mostly interact. On your website, you advertise your business, your customers sees it and contacts you for an order. Your website should be easy to access by customers and should be updated regularly.

You will need to hire some drivers for your trucks, trains, tankers, trailers, cranes or vans. The drivers should be carefully selected and trained with the company’s ideals and culture as they are the face of the brand. They should be polite when making delivery to customers and should be calm when driving.

Other employees too need to be employed to attend to customers when they call, and also man the business website.

Market your Haulage Business

For every business to survive, it is important Marketing is an important part of business survival. A business that does not engage in marketing cannot operate into the foreseeable future. Marketing involve carrying out activities that makes your business more visible to your target audience. You can market your business through word of mouth, referral, social media advertising, Google advert etc.

Insure your Haulage Business

You will need to insure your logistics/haulage business. The haulage business involves movement of things from place to place and anything could go wrong along the way. It is therefore important to get an insurance policy to cover for such eventualities that may spring up along the way. A haulage insurance or courier insurance can be taken which covers for damage and injury to third persons, damage to own vehicles, loss or damage of goods.

The logistic/haulage business is a very profitable business with great potentials for growth. It’s advisable for one to venture into it if one has the interest and is well equipped with the necessary information peculiar to the haulage business and is well prepared to launch into and function well in the industry.

By Taiwo Olowu, ACA

To learn more how we can help you achieve your vision on starting a business like this, please reach us now on 08023200801, email [email protected] or send us a detailed request by completing our enquiry form

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Haulage Business in Nigeria: How to Get Started

Haulage business simply involves transporting heavy loads from one place to another, using trucks and other heavy-duty vehicles. You can visit https://truckcoverexpert.com for choosing the best cover for your truck. And it’s one of the most lucrative businesses in Nigeria. However, starting the business requires huge startup capital.

If you can afford the startup costs and are looking to start your own haulage business, then this post is for you, as it discusses the basics you need to know about the haulage business in Nigeria.

Below are guidelines for starting a successful haulage business in Nigeria.

1. Understand the opportunities for haulage in Nigeria

Think of the following situations:
A family or a business is relocating
Someone is at the furniture maker’s to collect a new set of furniture
Someone is taking delivery of metal gates and doors from a welder’s and he needs to move them to his building site You can go through tig welder buying guide .
A group of traders from small towns and villages have come to a city market to purchase wares which they need to move to the hinterland
Some retailers from within the city are at a major wholesale market to buy wares to move into their various shops in the city
Some building materials have just been bought and they need to be moved to a building site
Large quantities of stone crushed at the quarry are waiting for evacuation to construction sites
A manufacturer turns out large volumes of products daily and needs to move the products to wholesalers across the country
Loads of imported goods come into the country through the sea ports and they need to be moved to warehouses across the country
Loads of goods are to be exported from the country and they need to be moved to the ports from different parts of the country
Petroleum products — petrol, diesel, kerosene, gas — are required daily by individuals and businesses in all nooks and crannies of the country and the products have to be moved in varying quantities to retailers or big end-users
Various shades of manufactures require different raw materials to be moved to them from different parts of the country
Farm produce of industrial significance like maize and those of consumption significance like rice, tomatoes, yams have to be transported from the various farming communities to urban locations where they will be consumed
Livestock has to be moved from the rearing communities to locations across the country
Fertilizer and Livestock Feed need to be moved to the farms from the cities

Each of the above situations occurs in its thousands every minute all over the country — you only need to take a look around you to see them happen; and the common denominator for each of them is haulage — movement of goods from one location to another.

Billions of tons of goods are transported across the country every year to be able to connect manufactured (locally and imported) and cultivated goods to wholesalers, retailers and consumers, and to get raw materials to factories.

2. Discern the possible scales of the haulage business

Huge as the volume of goods hauled across the country is, the sizes in which they are moved greatly varies depending on distance as well as who and what is involved.

So, the requirement for haulage can range from a delivery tricycle to a panel van, a pick up van, a light truck, semi truck, a delivery van, a tipper, a trailer, a low loader up to a crane which will need a crane operator . Each of these vehicles can be employed in numbers from one to a thousand. Financial requirement can also range from a few thousands of Naira to millions of Naira while organizational size required for haulage business will also vary. Financial assistance is available through different banking institutions for those looking to start their business delivery van and semi truck financing are one of the most sought after.

3. Choose a niche and size

Goods for haulage can be grouped. Notable groups include, petroleum, quarry, building material, agricultural, manufactured, industrial, and export goods. In each group, haulage can be undertaken on a small or large scale over short or long distances.

There are a number of approaches that can be adopted by an investor in the haulage business, namely:

Operating as an Independent operator or a haulage company: This entails directly managing your trucks and staff to do haulage business.
Operating as a contractor or sub-contractor: This involves handing over your truck or trucks — under a contractual arrangement — to a particular client who requires considerable and regular haulage services. The client pays periodically as agreed.
Leasing your truck to a haulage company: In this case, you lease your truck or trucks to a haulage company. The company uses the trucks to execute its haulage contracts and pays you at agreed rates and intervals.

For reasons of efficiency, it is advisable for you to take a very close look at the nature and requirement of the different niches and choose one depending on your location, circumstances and passion.

After choosing a niche, determine the scale at which you can operate, considering your financial ability. Make a choice between operating as an independent operator, as a contractor and leasing out trucks to a haulage company.

4. Create a business plan

Your business plan will serve as the guide you will follow in conducting the business. Ensure that what you have put together in the business plan can actually lead to the success of your haulage business. A good business plan will include the following:

Detailed information about your business — background, description, statutory requirements, opportunities, risks, threats, mitigation to risks and threats
Business mission, vision and objective
Business model
Mode of operation
Organisation
Capital requirement
Cashflow projections
Plans for finance
Income and profit expectation
Marketing — customers, competition, service delivery, advertisement
Management Practices

5. Execute according to the business plan

Bring the haulage business to life by working through the details set down in the business plan, to implement the following:

Register your business
Fulfill regulatory requirements
Acquire finance
Acquire trucks and other requirements
Staff the business
Source for business
Deliver service
Manage your finance

As you run the Business, take particular care of the following critical areas:

Driver management
Regulatory permits
Truck maintenance
Service Delivery and Customer Management
Finance Management — costs, credit, cash, debts, revenue

There are many opportunities for investors in the haulage business in Nigeria. With a proper foundation laid in a good business plan and a methodical execution of the plan together with attention to the critical areas listed above, you can surely have a successful haulage venture in Nigeria.

2 thoughts on “Haulage Business in Nigeria: How to Get Started”

I need a haulage truck that can transport goods of between 30Tons to 50Tons from Ibadan to Accra Ghana. Very urgent.

I can provide you with the truck. What is the plan. How do we meet to negotiate. Can you come to our office in Lagos ?

Haulage and Logistics Business Plan in Nigeria

Haulage and Logistics Business and Financial Plan

Our Haulage and Logistics Business Plan in Nigeria is well documented and can also be used for, but not limited to:

Grant Applications,
Bank Loans,
Proposal writing,
Business Concept Note,
Competitions e.t.c

Purpose of the Haulage and Logistics Business Plan in Nigeria

The Haulage and Logistics Business Plan in Nigeria will be of great use:

To formulate a strategy for starting and growing the business or existing business by identifying where the business is going and how to get there.
To test the viability of the business idea and maximize its opportunities.
To Obtain funding and achieve business goals and success. e.t.c

Benefits of the Haulage and Logistics Business Plan in Nigeria

The Haulage and Logistics Business Plan in Nigeria in beneficial because

It helps in outlining the steps needed to achieve the business goals and ideas.
It helps to articulate strategy to stakeholders who support the business.

Importance of the Haulage and Logistics Business Plan in Nigeria

The Haulage and Logistics Business Plan in Nigeria is important because

It will assist you in making sound decision in the administration of the commercial enterprise which will make a contribution to the success of the business.
It will additionally gives distinctive statistics on all components of the business, outlining the business desires and the steps required to achieve them.

Content of the Haulage and Logistics Business Plan in Nigeria

Executive Summary
Introduction
Business Description
Keys to Success
Products and Services
Market Analysis
Our Target Market
Pricing Strategy
Competitor Analysis
Sales and Marketing Plan
SWOT Analysis
PEST Analysis
Operational Plan
Management plan
Financial Plan and Projections
Financial Diagnostics

How to Get The Complete Haulage and Logistics Business Plan in Nigeria

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Haulage & Logistics

Haulage and Logistics

The haulage and logistics business is among the most lucrative business. But many people don’t engage themselves in this business because it is considered risky with a capital intensive nature.

Are you interested in learning how to start a trucking business from the scratch?
Do you need a detailed sample of a trucking business plan or feasibility study report ? Then this is just what you’ve been looking for.

Haulage logistics business plan in nigeria

The trucking industry, share similar fundamental and technical factors all over the world. So while Nigeria will be used as a case study in this article, the lessons/information can be applied anywhere else; whether in the United States, Canada, India, Australia, U.K, etc.

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In our current dispensation, the trucking industry is one of the biggest businesses in the world. As a matter of fact, in the United state alone, the trucking industry produces over 300 billion dollars of revenue a year. In Nigeria, haulage business and even logistics is a billion dollar business with an insatiable market. This is because transporting goods across long distances has become a necessity and an important industry.

No matter, the industry you find yourself, bulk goods must be transported to and fro (both raw and finished goods), which makes the haulage industry, a very lucrative one.

Haulage & Logistics Business Plan / Feasibility Study

Starting a trucking business sample business

Below is a step by step guide to starting your own trucking business.

Your Personality: You should be concerned first about your really want to do. Sometimes, it’s not too good to go into a business for the money alone; a passion for the kind of business that you are doing would help you to cope with the challenges and drive you to succeed. Although profitable, Haulage is Laden with a lot of risks and challenges. Hence, you need a strong mind and determination to run this business successfully. You have to be ready to deal with dishonest drivers, shady mechanism, accidents and all sorts of challenges that are certain to come up at some point in this business.

Choose a Niche in the Trucking Industry To succeed in the trucking industry, you must select a niche, because it is very broad. There are different niches in haulage business and the niche you choose would determine the type of vehicles you would need and you start – up costs.

For instance, you can check out these business opportunities for truck owners and then take the questionnaire below,

Will you be engaged in transporting bulk goods or would you be leasing trucks to businesses in the transport industry?

Will you outsource you truck to a trucking company or would you rather put your truck on a hired purchase?

Are you going to have short or long distance?

If you are to go into transportation, will you have solid or liquid goods?

These are questions that must be answered before you set out to start your own trucking business. If, for instance you choose petroleum products haulage, what you would need is a petroleum tanker and you would have to register with an oil company or work as a sub- contractor with an already registered company, but if you want to go into building materials haulage like carrying of sand, cement and granite from quarries to construction sites, what you would need is a tipper or along.

Start – up Capital For the trucking business, you need capital and lots of it. Your start-up capital will largely depend on the size of the fleet, you are intending to own. It is therefore important that you write a business plan and have a clear idea of how much, you would need to start the business and weigh your savings to see if you can afford it.

You need to ask yourself, if you would buy new trucks or used trucks. The ways with which you can get your trucks are either through purchasing them outright or getting them on lease. You can also consider to look for subcontractors. It’s agreed that the first investment is quite huge, but you can easily get it back provided you make the right management decisions.

If you do not have enough capital to start and want to check out other financing options, you have to consider first your credit worthiness and eligibility for borrowed funding and whether you have collateral security for the funds you wish to borrow. You also have to look into interest rates on the loan and compare it with your projected earnings from the business to be sure that the business would still be profitable even after paying off such interests.

HOW TO FINANCE YOUR HAULAGE / LOGISTICS BUSINESS

Some financers are ready to finance your project, if only you can convince them. The major financing option available is leasing. On a general note, equipment leasing is seen as a usage agreement between an equipment owner, known as the lesser” and a user of the equipment called “the lessee”, whereby the lessee remits to the lesser a periodic rental fee as compensation for the usage of the equipment. The manner in which a leases reviewed and utilized varies considerably, although there are two major forms which are finance lease and operating lease.

Finance lease is the most common type of lease in Nigeria and the rest of the world substantially. This type of lease transfers all risks and benefits of ownership to the lessee while the lessor still retains title to the equipment, which may eventually be transferred.

Operating lease on the other hand, is the type of lease where a substantial part of the risks and rewards incident to ownership are not transferred to the lessee. Operating lease encompasses the short – term line of equipment such as trailers, motorcars, barges or boats. Leasing provides the lessees the opportunity of payment over a longer period than with most other forms of financing. This provides the lessee with the opportunity of reducing financial commitments particularly in terms of stress.

Rules and Regulations For starting the haulage business, another important factor that has to be given serious consideration is the legal requirements. You would be required to obtain various licenses and permits and you would also be presented with a set of rules and regulations that must be adhered to. An extensive research should also be conducted on what these rules are and adherence to them has to be ensured.

Insurance : A lot of risks are involved in the Haulage business. You would be dealing with expensive mechanize which do not belong to you and would have to be conveyed to it’s destination safely. Putting the fact that you would be traveling over long distances to deliver those goods into consideration, it is impossible to predict the things that may or may not happen along the way. Accidents may occur, cases of theft may arise, dishonest drivers may sometimes direct the goods else where and this would lead to a huge debt on the part of the haulage company. This is why obtaining insurance for your haulage business is very important policies, and the premiums you would be required to pay and compare it with your projected earnings to determine viability of the business.

Your Management Strategy : Another important factor to look into when starting a trucking business is your management strategy to handling payload and clients. A good management team is very necessary to running a successful trucking company. Inexperience may lead you to employing a manager who is experienced to oversee the day to day affairs of the business and run the business profitably.

Your management team has to be experienced in the transport industry; especially with truck management. Another important aspect of running a trucking business is your accounting process. You can buy an accounting software for your business to make things easier. As you could also place your vehicles under fleet management comparies who would manage the vehicles for you and pay you an agreed sum monthly.

Employees ; You have to think about the drivers first because use they are the life wires of haulage business? It professional drivers who would be interested in working with you to promote the business, because your driver can make or mar your business. After the drivers, you must think of the marketing and administrative staff too. If your plan is to start a small – sized haulage business, you may be able to handle the administrative and marketing functions yourself but for a larger sized comparies, you may have to employ staff to support with administrative and clerical duties as well as marketing and promoting the business. Your Services to Client You need to know who your clients would be, what their needs are and how you would reach them. First you need to choose a niche, then write down a list of companies or prospective clients in that niche and devise strategies which you would use to reach them.

You need to know the types of goods you are planning to transport. Whether you will haul solid, liquid or gaseous substances you have to know if you are going to haul durable goods or perishable goods. Each type of freight has their own set or requirements, so it would be best that you decide or this before you even open shop. The types of cargo you will be able to carry will determine the types of clients you will work with. You also need to present yourself well, for the sake of your clients, in order to get the hauling contracts you need.

You also need to think of ways to beat your competitors and brand your business so that it can stand out from others in the industry. No matter the size of your business; your outlook matters a lot. So you don’t have to ignore working on image and brand. Present your services, the cost of providing the services and other added advantages or benefits that you think can make them sign up with you. Once you get the contract, provide quality service, so that they will be enticed to keep coming back.

Work Out Your Contracted Agreement ; Depending on the agreement, you have with the haulage company, some off them would marriage your truck for you, employ the driver and a motor boy and help you do all the major and minor repairs. Your only requirement would be to go to their office and collect your money at the end of the month. The trailers can conveniently make as much as N500,00 to N600,000 in a month, but all the expenses listed above has reduced the monthly take home of the truck owner to between N350,000 to N400,000 in a month.

Maintenance : Maintenance issues will always arise, and when they do, you would need the right maintenance services to put the vehicle back in order again. You would need a very good mechanic to handle repairs of your vehicle. This is necessary because the level of maintenance and quality of servicing your car receive would go a long way to promote the life span of your vehicles. You should find a competent automobile we pair companies or technicians who can handle repairs of your vehicles.

There could be people, who would be willing and able to provide 24/7 services and who would be willing to trend over long distances in case your vehicle breaks down on a trip. For people who own fleet of vehicles, it is more economical and advisable to employ an in house mechanic or team of mechanics to handle maintenance and repairs of your vehicles.

Starting a Trucking Company (Haulage) Nigeria as a Case Study

Transport business in Nigeria is a old as the nation itself, and there contributed in a big way to the business have been known to country. Transport plays a crucial role in most business activities Efficient transport is necessary component in the production and distribution process, which is commonly referred to as supply chain logistics.

Nigeria has the largest road networks in West Africa and the second largest, South of the Sahara, with roughly 108, 000km of surfaced roads. The current paralysis of the rail system in Nigeria, has made road transport, the only effective means of conveying heavy goods from one point to another within the country. The population is there and the environment is good. This explains why the road haulage business is one of the most lucrative businesses to start in Nigeria today.

Road haulage involves the transportation of manufactured consumer goods, raw materials, machinery, petroleum products, and natural resources from one point to another.

Three Distinct Ways to make Money in the Haulage Industry

Starting a haulage business is synonymous to starting a valid fire. The returns are enormous, but it greatly depends on what your truck will be doing. Haulage is a broad area and all spheres of haulage have its specific intricacies, the good news is that it is not so difficult to learn.

Running the business an independent Contractor This involves starting your own haulage company, operating your trucks, having your drivers and hunting for contracts from companies that may require your services, and the riskiest.

For instance, if you have a fleet of 5 trucks to start with, each truck can fetch you N500,000 or more in profits per week, depending an the capacity of the truck, the number of trips covered per week, and the distance travelled per trip.

For a truck, traveling from lagos to Onitsha, you will charge about N250,000. After deducting the cost of fueling and other routine measures, (which will be a round N100,000), you will be left with a large N150,000 profit, and that’s just for one trip. If the same truck does 3 to 4 trips per weeks, that’s a weekly profit of between N450,000 and N600,000. You can now imagine how much you would make monthly of you have 5 trucks of the same capacity.

You can decide to haul products for oil majors like Total, Oando, Con oil or Telecoms comparies like MTN, Airtel, Etisalat, Glo, etc.

However, all these companies have stringent entry procedure and requirements, so your option going in as an individual may mean merging with some other persons in the business.

Though the idea of starting your own haulage company is very attractive, due to the huge profitability of that option, though there are certain risks involved, just as in the case with any other profitable business. Below are some of the risks, and downsides of haulage business.

Running the business as a Contractor or Subcontractor . In this model of haulage business, you will be serving only one client, usually a multinational or big manufacturing company. The company will be incharge of all your trucks as wells as the process of lining and paying drivers. At the end of each menth, the company will pay you an agreed amount of money, which ranges between N350,000 and N650,000 – depending on the number of trucks you have.

An interesting fact about this business is that if is properly set up, all you need to do is relax and wait for your monthly earning, which can be up to N800,000 (depending on the type, age and tonnage of your truck).

You will need to think properly, before adopting this model, because you will be subject to certain terms and conditions stipulated by the company, you register with (of course, you will be required to register with the company).

Leasing your trucks to a haulage company This model is similar to running the business as contractor or sub – contractor. But the difference is that you will be sub- contracting with a haulage company. Here, you will also enjoying the benefits that come with sub – contracting with a multinational or manufacturing company.

More Tips for Running a Trucking Business Successfully.

Often, drivers travel at night, an holiday and weekends to avoid traffic delays and to deliver cargo on time. Truck drivers have to cope with a variety of working conditions including variable weather and traffic conditions, boredom and fatigue. Many truck drivers, however, enjoy the independence and lack of supenision found in long – distance driving. They collect 10% of the money they make in every trip which makes them earn as much as N100,000 in a month.

BUYING A TRUCK OR TRAILER .

A brand new trailer cost between N15m to N20 million at Leventis and UAC, while you can get a fairly used truck for N6 to N 7million. Some of the fairly used trucks are imported from Belgium, Germany, and United Kingdom. You can also by a trailer head and refurbish the engine to standard; in total, if can cost you between N3 to N3.5milion. a trailer Tanker cost between N3 to N3.6million.

Road Haulage is obviously a huge industry with many and various opportunities for anybody that is interested to invest in it Almost 90% of the traders on our road are second hand and they are still ok. If you don’t want to spend a lot of money, you can decide to rent the back which goes for N30,000 a month. You will need to pay for for 4 months, which is N120,000.

Buying a Tipper

Tippers carry granites from Quarry to different part of the country. Any investor in this type of business is adviced to register with the Quary, they make 2 trips everyday and they charge between N30,000 to N35,000 per trip. A good tipper cost between N4 million to N5million, and you are entitled to about N400,000 in a months, if you can give your tipper to a manager to manage for you.

Four Challenges of starting a trucking Business

Apart from the issue of capital, the trucking business is management intensive. Another challenge militating against the success of trucking business is bad roads. The issue of bad roads results to unnecessary repairs, maintenance and accidents/hazards.

The last but not the least challenge of starting a trucking business is getting good drivers.

The “face” of your company, is highly dependent on the type of drivers you employ, so make sure you hire drivers that are equal to the task. You have to check their references and background; and make sure that they’ve not taking any illegal, drugs. Hiring a terrible driver or being involved in an accident, is going to be a disaster; not only to the finances of your company, but also to your brand image. Therefore recruit wisely.

In conclusion, the trucking industry is quite a tough terrain to break into, but the reward is worth it. Congratulations; on your ambition to win one of the fastest growing businesses in Nigeria and the entire continent.

Travel / Tours Agency
Transportation (Intra-State)

By BPN Staff

Business Ideas

How to start haulage business in nigeria.

One of the businesses in Nigeria that is related to the transport business is the haulage business. In today’s article, I will be going into detail about everything you need to know haulage business in Nigeria. I will be explaining what haulage business means, whether it is a profitable business, the capital needed, the step-by-step guide on how to start a haulage business in Nigeria, and more.

Many people believe the haulage business is the same as the logistics business but this is not true. Haulage is a part of the logistics business. It is under the logistics business. However, there are different types of haulage businesses in Nigeria.

The most common type of haulage business is the transporting of heavy equipment or building materials from one place to another using tippers or trucks.

What is a Haulage Business?

Haulage business is the business of transporting goods or products in large quantities by road or rail between suppliers, factories, warehouses, or depots. Haulage is the act of moving anything that customers could need in bulk. This may include consumables to non-consumables.

Simply put if the business is not using trucks or tippers to move products it is not a haulage business.

Is Haulage Business Profitable?

The haulage business is a profitable business in Nigeria. However, it is a capital-intensive business that runs into millions of naira. With one truck you can start the business as soon as possible. The reason why the haulage business is a lucrative business is that you can use your trucks or tipper to transport any large items, machinery, building materials, or petroleum products to make money.

In Nigeria, most haulage companies register with dredging companies to make money transporting sand from the seasides to construction sites.

Capital Needed to Start Haulage Business

The cost of starting a haulage business is high and this is due to the vehicles needed in the business. To start a haulage business, you will need at least one truck or tipper. The cost of these trucks in Nigeria depends on so many factors. It depends on the brand, the year of production of the truck, whether new or old, and more.

To buy a tokunbo haulage truck in Nigeria you will need at least 30 million – 50 million naira . As for the best truck for haulage business, there is no truck that is the best for haulage in Nigeria. It just depends on what many individuals like.

Here are steps to start a haulage business in Nigeria.

1. Write a Business Plan

The first step on how to start your own haulage business in Nigeria is to write a well-detailed haulage business plan . In a haulage business, you need a business plan to make sure you do not make unnecessary mistakes.

The business plan will guide you on everything you need to know about the haulage business in Nigeria even down to how to increase profits easily in the business. Business plans are not hard to write even if you are not familiar with them.

All you need is a step-by-step guide on the format and what you write. But if you want to avoid all the stress and you need a professional touch you can contact us via the blog to help with it at a discounted price.

2. Get the Capital Needed

As I explained earlier, the haulage business or tipper business is a capital-intensive business. In fact, due to this some people even call this business the business of the rich. For this reason, you might need to think deeply before starting a haulage business in Nigeria.

If you borrow money to start a haulage business because it can cripple the business from the beginning and even put you in eternal debt. If you want to start a haulage business you must be able to handle all financial requirements without hesitation. You must be able to buy your trucks and pay every other money needed for the registration of the business.

You also need to set aside money you will pay as salary to your truck drivers especially if you will not be driving your haulage vehicles yourself. Averagely in Nigeria, they pay truck drivers salaries ranging from #100,000 – #200,000. You can also read my article on how to fund your business to know how you can easily fund your haulage business.

3. Buying your Tippers and Trucks

Different types of trucks or tippers are used for the haulage business in Nigeria. Some of these trucks are new while some are tokunbo or fairly-used. Depending on what you can afford you can buy new or tokubo trucks for your haulage business in Nigeria. Tokunbo tippers are reliable but they do not last as much as the new ones.

You can import your trucks from Japan or the USA or simply buy the trucks in Nigeria if you are avoiding import duties and other stress in the importation. After buying your trucks, you need to get every document as regards the ownership and register all trucks under TOAN (Truck Owners Association of Nigeria).

4. Register your Business Name

You can not start a haulage business in Nigeria without proper registration. First of all, you need to register the haulage business as a company. To register the business as a company in Nigeria you need to register your haulage business under the (CAC) – the corporate affairs commission .

After you are done with this, the next step will be to collect all other needed documents according to the kind of haulage business you want to run in Nigeria. There is a petroleum haulage business, sand haulage business, granite haulage business, and more.

All these haulage businesses have the registration you need to do under them. Then you need to employ your truck drivers. It is better to hire experienced truck drivers than new drivers. Here are steps on how to register your business name in Nigeria.

5. Start Transporting your Products

After all registration and documents, you can start your haulage business immediately. As for how you can get your first set of customers, you connect with dredging companies in your local area to help them transport sand from one location to another.

How much you are paid per transport of goods as a haulage company depends on your agreement with the dredging companies or any other customers.

6. Profits in Haulage Business

The profits in the haulage business are massive especially in Nigeria due to the fact that only a few can afford to start the business. So if you start a haulage business today, you will be one of the luckiest people to make money of millions. The more your truck delivers products in a day the more the profits you will make.

For example , if you deliver sand 20 times to a particular customer in a day, you will make more money than when you transport sand just 10 times.

It is also important we discuss the expenses of an average haulage business in Nigeria so that you get prepared. For example, you will spend money on diesel, the salary of truck drivers, repair and maintenance of trucks, and other hidden expenses.

The haulage business in Nigeria is a lucrative business it just demands more of your money and time. You also need to connect with many customers so as to keep your business running and your profits haulage coming in. In the future, if you have any reason to stop the business you can simply sell your trucks or sell your haulage company to a good buyer.

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How to start a profitable Haulage Business in Nigeria

The hauling business is an industry that does not have a specific start date, but it is possible to find records of it happening in the early 1800s. For example, in 1802 two men built a wagon toll road from Pittsburgh to Cranberry that allowed for more efficient transportation of goods over long distances.

The hauling business has grown into many different industries including trucking, heavy load transport, and shipping.

A haulage business is a company that provides services of transport goods from one place to another. These companies have been around for centuries and have evolved with the times. They have also gone through many transformations in the past few decades in order to keep up with the changing demands of globalization.

The nature of haulage industry has changed through a number of years. It has gone from an exclusively domestic industry, where people transported goods within their own country, to an international one where companies transport goods between countries. How to start.

Haulage Business in Nigeria

This article will guide you through the process of starting and running a haulage business in Nigeria. The first step in starting up a haulage business is to conduct thorough research on the state of the industry, and find an area where there is little or no competition. Establishing a firm base for your business will be much easier if you have access to good resources.

Next, set up your office premises with the right location and equipment. A suitable property can be found by considering key factors such as proximity to major roads, available parking space, security features, and availability of utilities such as electricity and water supply. If you are operating from home, ensure that it is well secured with adequate lighting around it at night. You should also have on hand many different promotional materials such as brochures.

Haulage business is a business of transporting goods by truck. It’s a great business to invest in if you have the capital and the required logistics knowledge.

This article will show you how to start a haulage business in Nigeria from scratch.

Nigeria is a country with both economic and political stability. It is an African country which has an excellent business environment in Africa and beyond. Nigeria has a flourishing economy, which accounts for more than half of the GDP of all African countries. Its financial market is one of the best in the world. The Nigerian Stock Exchange (NSE) is the largest on the continent and can be found in Lagos, one of Africa’s leading economic cities.

Nigeria presents opportunities for entrepreneurs willing to start their own businesses due to its flexible legislation, plethora of resources, positive economic climate and rich culture. Unfortunately, there are many business sectors that are still difficult to enter mainly because they require large investments that many people cannot afford. Haulage business falls into this category as it needs

In Nigeria, the transport and haulage industry is a booming business. As a result, there are many Nigerians who have gone into this line of business to make profit. As such, they provide transport-based services to individuals and organizations.

Nigeria is the second largest economy in Africa and it has attracted a lot of investment in recent years. It also has a rapidly growing population which makes it an attractive destination for many international companies. One of these companies is transport company which provides haulage services such as trucking, shipping, and freight forwarding.

Nigerian government has made a number of reforms to make transportation easier and more efficient in the country. Such reforms are expected to further increase economic growth by reducing transportation costs and time.

Nigeria has seen an increase in the number of cars on its roads in recent times which provides more opportunities for drivers and haulers looking to start their business.

There are many ways that you can start your own haulage business in Nigeria such as starting with buying trucks or renting.

The transportation industry is one of the most lucrative industries in Nigeria and with the right business model, the right investment and some time, anyone can start a trucking company in Nigeria.

The transportation industry is a huge industry in Nigeria due to the high volume of goods and services that are transported every day. The transport sector in Nigeria includes haulage companies which are responsible for transporting goods from one point to another.

If you want to start a haulage company, there are many things that you need to consider.

First, you’ll need an office space for your trucking company so that goods can be delivered on time. Second, you’ll need trucks or trailers to transport goods from point A to point B Next, you’ll also need drivers

Starting a haulage business in Nigeria is not as simple as it may seem. There are a lot of important factors to consider before going out to start one’s own haulage business.

It would be prudent for anyone who wants to start his or her own haulage business in Nigeria to first understand the challenges and opportunities involved in this process. One must also understand how these same challenges are mitigated and opportunities are maximized in this line of work.

How to Start Haulage Business in Nigeria

Things You Must Consider Before Starting An Haulage Business Hauling is a lucrative field to get into, but there are some things that you need to consider before starting such a business.

1. Trucking company : When you are setting up your own trucking company, it is important to have the right kind of trucks for your line of work. It would not be a good idea to invest in expensive and luxurious trucks if the haulage business does not require these.

2. Vehicle purchase : You will also need vehicles for your employees which you will have to buy from somewhere and maintain on your own. However, if you know of any used vehicles that are available at a reasonable price, then go ahead and use them too!

3. Fuel : In order to transport goods from one place to another, fuel will be necessary at all times.

Haulage is a huge industry in the UK. It’s a billion dollar industry, and it employs over 80,000 people. Haulage is the movement of cargoes by road, rail or air from one place to another.

What you need to know about starting a haulage company:

1) Make sure you have enough capital saved up for unforeseen expenses like taxes, insurance for your truck and fuel.

2) When starting out, make sure you have an advantage over the competition because if not then it will be difficult to survive in this industry.

3) The type of license that would work best is one that allows access as well as for hire vehicles.

4) You need to be aware of the hours in which you can operate legally on public roads

This is the most comprehensive guide for starting a haulage business. It includes the six most important factors that every entrepreneur should consider before starting their own company.

1) Operational costs : Start-up costs and operational costs are key when considering whether to start your own haulage company.

2) Haulage industry knowledge : All small businesses need passion and hard work but without knowledge of the industry, they will not succeed.

3) Vehicle Types : There’s a lot to think about when it comes to choosing what type of vehicle you want to buy such as size, refuelling requirements and journey length.

4) Transporting Dangerous Goods : Haulers need to be very aware of all transport regulations in place as they can be fined heavily if there are any infringements.

Actions You Must Take To Start Your Own Haulage Business In Nigeria

Haulage is one of the most lucrative businesses in Nigeria. As a result, it has spawned a lot of new business owners who have tried their hands on this type of business.

The question now is, what are the steps to take in order to start this type of business?

Being a haulage entrepreneur is no joke. But with the right steps and the right strategy, you will surely be successful. Even if you don’t have capital to start up your own haulage business, it’s an option to either partner with another person or borrow funds from a financial institution such as Zenith Bank Nigeria Plc.

In Nigeria, there are plenty of opportunities for people who want to start their own haulage business. However, you must take six actions in order for your plan to be successful.

Haulage is a common occupation in Nigeria. The article discusses 3 actions to take to start your own haulage business.

1. Know Your Trade : If you are thinking of starting a haulage business in Nigeria, it is important to know how the trade works and what it entails.

2. Find A Partner And A Vehicle : The partner will be your driver and the vehicle will be the one you use for transportation of goods from one place to another. Sometimes, a partner might not be available so you could rent vehicles for transport on those occasions when needed.

3. Decide On A Business Name And Logo : This can be done with input from your partner or even without their input if you have a clear idea of what you want for your brand identity and name before they come on board.

Although Nigeria is a hotbed for entrepreneurial talent, the regulatory environment is still not conducive for aspiring entrepreneurs to thrive.

In this article, I will be discussing actions you must take to start your own haulage business in Nigeria.

There are a lot of hurdles in starting a business in Nigeria. These are challenges that even the most experienced entrepreneurs would struggle with. Below are some of the challenges that you would need to overcome before starting your own haulage business in Nigeria.

5 Key Areas To Focus On When Starting a Transport Business

Transport companies are a major part of how we get goods and services to the people. As people become more reliant on these services, the demand for these types of transportation will continue to grow.

This article will highlight five key areas that you should focus on when starting your own transport company.

If you are thinking about starting a transport business, here are 5 areas to focus on:

1) Establishing a name for your business.

2) Signing up for the permits and licenses needed in your area.

3) Choosing the vehicle that best fits your needs.

4) Finding the right insurance provider to suit your specific needs.

5) Understanding the regulations that will dictate how you operate your business

The Resources Required to Start a Transport Company in Nigeria and the Costs Involved

With the right resources, it is possible to start a transport company in Nigeria. The costs are manageable and the procedures are not difficult.

This introduction starts by stating that with the right resources, it is possible to start a transport company in Nigeria. It then states that the costs are manageable and that the procedures for starting a transportation company in Nigeria are not difficult.

One of the reasons why many aspiring transport entrepreneurs are hesitant to start a transport company is the financial resources required to get started. But there are ways in which you can reduce the initial investment cost if you know where to look.

No matter what your trucking needs, it can be difficult and expensive to get started. You need money for a vehicle, fuel, insurance, maintenance and more. With so many costs involved, it’s no wonder that many aspiring transport entrepreneurs are hesitant to start their own trucking company.

Nigerian laws require that a company looking to operate a transport company must have a minimum of N2,000,000 in paid-up capital.

The cost for obtaining the NOC (No Objection Certificate) from the Federal Road Safety Commission to operate as a transport company is N1,200 and it takes 7 days before it is granted.

There are many resources one would require to start a transport company in Nigeria. The first is a business plan and the second is the capital to purchase a vehicle. The cost of starting up an average transport company in Nigeria ranges from $110,000- $330,000.

The resources required to start a transport company in Nigeria are complex and vary from one country to the next. In this section, we will explore the resources needed and their costs for starting up an average transport company in Nigeria.

To start haulage business

One of the best ways to start a haulage business is to get a truck and put some trailers on it. This is the simplest way of getting started as it doesn’t require much capital.

The next step is to find your first client and get some transportation routes for them if they have some already. You can also try posting your ads on OLX or Jiji, but make sure you are not trying to give away your truck for free in these websites because people might take advantage of you.

If you find it difficult to borrow money from banks, then ask family members, friends, or even strangers that might be interested in the business idea for an investment.

Nigeria’s population is young, growing and on the move. The country is expected to become the world’s third largest economy by 2050, according to the International Monetary Fund (IMF), with growth driven by its burgeoning middle class. In this article, we will explore some of the most profitable business ideas for haulage companies in Nigeria.

Some of these business ideas will be more affordable for a home-based entrepreneur, while others might require heavy investment and a physical location. They are all worth your consideration if you’re looking for an opportunity to start your own haulage company in Nigeria or just want to expand your existing service offerings.

Nigeria has a fast growing population with strong economic indicators which presents an excellent opportunity for entrepreneurs looking for new opportunities in haulage businesses. Here

The following are the top 4 haulage business ideas in Nigeria that you can consider starting with.

1. Hauling Fruits and Vegetables : This is a lucrative business because buyers want to buy foodstuff from those who they can trust and those who have fresh produce.

2. Hauling Building Materials : It is a good idea to start this kind of business if you are in Lagos or Abuja because building materials come from outside the state for construction purposes, which means that there will always be demand for hauling these kinds of products.

3. Transportation Services : transportation services are always needed, and so this is a good idea to invest in as well as it has high profit margins.

4. Hauling Oil : This is another lucrative business. Nigeria is a country with vast natural resources and it also has a booming economy. With that, you’ll need to invest in some of the best Nigeria Haulage Business Ideas to exploit the high demand for goods and services in the country.

One of the Nigeria haulage business ideas is to use trucks to transport goods from one place to another. This will require hiring drivers, having vehicles for transport and also looking for suppliers of these items before setting up shop.

Another Nigeria Haulage Business Idea is setting up your own cargo shipping agency. This will require getting licenses for importation and exportation, looking for customers who want cargo shipping services as well as hiring employees who are experts in logistics.

10 ideas for starting a Nigerian haulage business.

Nigeria is one of the fastest-growing economies in Africa and with an annual growth rate of more than 7% it’s also one of the largest. As a result, there has been a significant rise in demand for goods and services across Nigeria. This has led to an increase in transport activity, which means that there are plenty of opportunities both for Nigerian entrepreneurs who want to start private haulage businesses and for people who wish to work as drivers or go into other areas of the logistics industry. The following 10 ideas are designed to help you start your own haulage business in Nigeria:

Haulage businesses are the backbone of Nigerian economy. The top 10 means that there are other ideas out there. This article is a list of the ten most profitable and best hauling business ideas in Nigeria.

1) Land transportation 2) Air transportation (carriage) 3) Rail transportation (carriage) 4) Water transportation (carriage) 5) Barge transportation (carriage) 6) Tramways, aerial tramways, ropeways 7) Port and harbour operations 8-10 Unspecified

Nigeria’s population is the third largest in Africa and a truck is an indispensable vehicle as it can transport goods from one point to another.

Nigerian Haulage Business Ideas:

1) Freight Forwarder : A business idea that entails transporting goods from one point to another by road, rail, or air.

2) Heavy Vehicle Supply : One of the Nigerian Haulage Business Ideas involves sourcing and supplying heavy vehicles such as trucks, trailers, semi-trailers, and other types of vehicles for the Nigerian market.

3) Trucking Company : This Nigerian Haulage Business Idea entails using a fleet of trucks to transport goods from one point to another for money. It is often associated with freight forwarding services.

4) Fleet Management Company : One Nigerian Haulage Business idea which deal with fleet management.

There are many advantages to starting a haulage business in Nigeria. This article will outline ten popular ideas that you can use when starting your own trucking business.

It is very easy to get started with a haulage business in Nigeria, as there are many different options for the person that wants to start this type of company. These 10 ideas are just some of the reasons why starting a trucking company in Nigeria can give you an advantage over other companies in this market.

Thanks for your time and I believe with information in the article above, starting your own haulage business in Nigeria should not be a problem or something bothering you. Hope this article is useful? Please share with your family and friends.

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24 Jul 2022

Starting a haulage & logistics business in nigeria.

Table of Contents

INTRODUCTION TO STARTING THE BUSINESS . 4

Self-appraisal for the business/Readiness for Entrepreneurship . 5

Pros & Cons of starting the business: advantages and disadvantages of starting the business. 6

Skills required to succeed in the Business e.g. Self-motivation skills, customer service skills, business savvy skills. 7

Technology Required for Business if any . 8

Branding . 10

Applicable Laws, Acts, Legislation . 11

Steps in Obtaining Applicable License where required . 13

Food and Beverages License in Nigeria includes:- 13

Licencing/ Certification: List all the types of licenses required and possibly who grants them .. 13

Develop a comprehensive Business Plan: State the full items that must be contained and the topics it will cover. 14

Plan Outline: 14

Choosing location . 14

Goals/objectives . 16

Insurance . 16

Hiring Process: HR process, getting the s . 18

Discuss the Sub-Sectors in the Industry: 18

Choosing market Niche (Specific business type) 18

Revenue Model for the Business . 19

Business Structure: Partnership, sole proprietorship, Limited Liability Company, PLC (state advantages and disadvantages of each chosen structure. 19

Registration steps for company staff according to CAC .. 22

Obtain a Tax Identification Number 22

Mistakes to avoid . 23

Equipment Required-Plant & Machinery (List) 23

Competitive players: Big player and small player 24

Name the Business: Offer tips on the name of the business including domain, name of the offer system. 24

Gross Profits Calculations . 25

Raising of Fund for the business/Sources of Funding /Financing the Business . 25

Recommendations for the business . 25

Call to Action . 26

Conclusion . 26

A Haulage and Logistics company is typically concerned with the transportation or conveying of goods from one location to another through the use of the road and sometimes through rail. It does this through the use of trucks, tippers, trailers, cars, lorries, motorcycles, trains, etc. advanced forms of logistics would involve the use of airplanes and the use of ships for logistics on air and water respectively. Anything that is touchable and can be moved or hauled is conveyed by the haulage and logistics company. Goods ranging from agricultural products to building materials are usually conveyed through haulage companies. Other kinds of goods that are moved or transported include; home appliances, natural resources, equipment and machinery, Fast Moving Consumer Goods (FMCG), petroleum products, furniture, etc. Whatever can be transported is hauled by the company. Manufacturing companies require the use of haulage to transport their goods from the place(s) of production or place of sale to customers, retailers, distributors, or even their warehouse. This makes the business to be a very lucrative one. The continued existence of companies that manufacture goods will make for the continued need to operate a haulage and logistics company. During relocation, when a person or a family is relocating from one city to another, most times it will require the service of a logistic company to carry some of its household items or even furniture and this continues to make the business a relevant and needed one. The haulage and logistics business falls under the transportation industry and it is a billion-dollar industry with an unsatisfied and insatiable market. The logistics sector is unarguably one of the fastest-growing industries in Nigeria, even though it is still emerging. Its estimation as of 2018 was 250 billion naira. This report was given by the 2018 Logistics and Supply Chain Industry report of Vanguard. There are three ways to operate as a haulage and logistics company. They include the following;

Operating as an Independent Haulage Company

A Haulage and Logistics Company may choose to operate as an independent company. It means that is solely responsible for directing its affairs and operations. The company will purchase its trucks, employ the drivers and be responsible for sourcing out jobs and haulage contract services. Here, you do not work or merge with anybody, you do everything alone, take all the profits, bear all the costs as well as the risks involved in the course of operations. The challenge involved in this kind of business operation is that of credibility. Before securing a contract, you will have to prove your credibility, hence many companies often prefer merging with another, it could be a booster to their credibility.

Operating as a Contractor or Sub Contractor

In this mode of business operation, you will be required to partner with a company that will manage your trucks as well as drivers. They will be in charge of the administration and management of your trucks; they will also be the ones to pay your drivers while they give you a stipulated amount of money at a stipulated time agreed by both of you. Where the terms of agreement and business mode of operation are properly implemented, you may simply need to just relax and watch your income come to you at the stipulated time. The amount that would be given to you would be subject to the age, type, and carrying capacity of your truck. The challenge here is that your company will be subjected to a set of terms and conditions which you would have to agree and abide by before it can be successful. There could be times when certain conditions may not be palatable.

Operating as a Leasing Company

Here, you simply lease your trucks to a haulage company and the profit will be given to you based on your agreement with the company. It is similar to the contractual type of operation but it is different in that in this option, you are still responsible for your trucks. You will need to service them and work on them should there be any need to.

The Vision for your business and financial capacity will decide on which operative pattern to adopt.

Different groups of people patronize haulage and logistics companies for different reasons. These include companies, farmers of large products, families on relocation, people purchasing containers that need it to be carried to its place of use, petroleum companies, etc. Given the above, a haulage and logistics company must be prepared to meet the needs of its various target market, it needs to ensure its commitment to deliver excellently to its customers. The following should be considered: –

Customer Service

The customer service of the company should be always inviting to members of the public. The drivers of the company must be careful not to portray the company in bad light or do things that could hamper the goodwill of the company. He must have good gestures, not be arrogant or insulting to members of the public.

Service Standards

Haulage companies must set standards for themselves and be careful to follow them. They must also be careful to follow set standards as it concerns haulage and logistics in the country by the regulating body of transportation. Service standards conjointly embody the rules for driving, logistics, parking, off-loading, etc.

Top on the priority of labour laws is the adherence to the Health and Safety of the workers in the company. The company must ensure that its drivers are licensed by the Federal Road Safety Commission and that the license is renewed whenever it expires. Unlicensed drivers must not be allowed to mount the steering of the vehicles because it could be dangerous to the safety of pedestrians.

The members of staff of the company must work together. Where the company has many drivers which is often the case, they must avoid being at loggerheads with each other, the members of staff that sit in the office must not be found arguing with the drivers or other members of staff. Respect and Cooperation must be the driving forces behind what powers the modus operandi of the company.

Pros & Cons of starting the business: advantages and disadvantages of starting the business.

With the right strategy and organized business operation, you could improve the customer experience.
You’ll get recommendations from customers based on your ability to deliver excellently.
You will be able to optimize operational costs in the business as your experience grows
There is a high profit to be earned from the business. You will have a boost in profitability.
You will have the opportunity to deliver excellently and with greater productivity to your customers
You will be able to plan your routes intelligently as you tow the roads often.
Good Communication between your clients and drivers.
On a lease or contractual basis, you relax and watch your truck earn for you.
Rate of accidents in the industry is usually high owing to bad roads and this is a major disadvantage because it could lead to loss of life, damage to the truck as well as damage to the goods being carried.
Customers can be disappointed and this can affect the goodwill of the business should there be any delay in transportation of their products or goods.
Many drivers tend to be shrewd and unreliable as they carry out their duties, this can run down the business and make you operate at a loss if not well managed.
There is a high cost of maintenance and fuelling of the trucks since these trucks are prone to damage by constant use and the amount of fuel or diesel needed for them to get to their destination is much
This business is highly capital intensive along with the risks involved in it.

Skills required to succeed in the Business e.g., Self-motivation skills, customer service skills, business savvy skills.

Owing to our multiple business engagements within and around industries of this kind, a list of top skills needed is given below;

Engineering Skills

The company will require a mechanic or engineer that will be in charge of servicing the trucks and vehicles of the haulage company. It needs a trusted person who will either be on its payroll or someone that would be hired on a contractual basis. This engineer must be competent to understand the trucks and how they function to ensure the proper functionality of the automobiles.

Organizational Skills

For the general work populace and especially for those at the managerial level, the ability to organize is highly needed in an industry like this. Owing to the delicate nature of the industry, it is good that a person who knows how to organize the various arms and departments of the company is employed to get more returns as a result of the good and skillful organization of man and material resources.

Customer Service Skills

As earlier mentioned, the members of staff especially the drivers and logistics agents that liaise with customers are required to be friendly, nice, and humane in their dealings with members of the public. They must possess the right skill to make sure that customers do not get unnecessarily angry, agitated, or irritated over an attitude or behaviour of any member of staff.

Driving Skills

Driving is the core of this business. It is the pillar that holds and ensures the success of this company. It is expected that competent and licensed drivers should be hired. They must not be reckless or people with unstable emotions as it could affect their mannerisms and attitude on the steering.

Employee Relations

Every business establishment requires good employee relations within it to foster unity. Just as you need to have good customer relations, the same is equally needed for the employees.

Technology Required for Business if any

Technologies and technical know-how for companies within the industry will include the following;

There seems to be an improvement in automation in haulage and logistics as warehouse management seems to have paved the way for Artificial Intelligence and Robotics. Without needing human involvement, self-driving cars and self-driving fleets of trucks navigate their way between a warehouse and a customer. This automation could help increase efficiency in transportation as well reduce accidents and ensure swiftness in the delivery of products.

Truck Platooning

In Truck Platooning, vehicles are linked in proximity with one another using automated driving support systems. This could help save cost as trucks will be made to drive at a speed that is constant though lowering fuel consumption and ensuring reduction in the emission of carbon dioxide. This occurs in such a way that a driver pilots one truck usually the first truck and other trucks behind move as in a convoy fashion without drivers but moving near the first truck.

Electric/Hybrid Buses

Technological advancements in transport and logistics include the use of electric and hybrid buses. It is part of the need to use an alternative source of fuel that these kinds of buses are used. Many of the buses and vehicles use diesel which increases CO 2 emissions. Countries of the world have begun investing in electric and hybrid means of transportation and logistics.

Data Analytics

Where there are massive volumes of data, data analytics would be required to have an improved understanding between the consumer and the market at a greater scope and a higher level. Data analytics will help the company to plan efficiently in its operations, processes, and strategies as well as ensure that they are poised to deliver accurately to the needs of consumers. It creates a deep understanding of consumer market and process data and helps to create grounded and highly rewarding user experiences.

Within the haulage and logistics industry, blockchain has gained dominance and popularity in the last few years. It ensures that large amounts of valuable information are recorded and encrypted with safety and transparency. It helps in the safekeeping of logistics operations as a digital transaction ledger. It helps to prevent documentation fraud and hacking of system data while making sure that the record is highly organized.

Vehicle Management. Where the company is operating independently, it needs to manage its trucks and fleet of vehicles. It could outsource or contract to another company in charge of fleet management or it does so itself. Whichever is the case, management of the vehicles is highly needed. Regular servicing and maintenance are very necessary. The garage where the vehicles are parked will also have to be managed ensuring it is free from harmful objects, scattered motor parts needing repair or change, etc.

What you should do:

Have an approach to your logistic operation that shows it as part of a cohesive line, strung by core complete traits and values of your business., you would want a brand that wholistically defines who you are and what you do.
Develop a unique brand that embodies the totality of your haulage and logistics operations which should be different from other companies in the industry.
You would need to outline a systematic way of gaining visual representation in the industry making yourself visible for those that need your services to patronize you when needed.

Make Investment in a branding system that is highly visual and unique to give you the best reach

Have a consideration of trying to gain an increase in complete identity by developing extra graphics that is tightly grounded in your core complete identity.
Ensure consistency in the use of the developed branded graphics to further your visual language for your audience. This is highly important. A graphic that is customized to your logistic brand will make you easily identifiable whenever that logo or graphic is seen.
Use your visual branding system to access clients through all contact means available. (Website, product packaging, email, ads, etc.) to extend recognition.

Share your authentic story as it appealing and arresting to the attention of the customers’

Share your authentic story to the audience which should be captivating.
Ensure to feature your authentic and captivating story visibly on your business website as you deliver products for clients. Take pictures of your buses and trucks, places of delivery, and other things needed to boost your brand.
Try to advertise on your trucks. Where the trucks are yours, do a graphic or logo on the trucks to aid the advertisement, marketing, and branding of your logo.

Regulatory Bodies of the Industry

The ministries of Transportation and Communication are broadly responsible for haulage, logistics, and courier services. However, other bodies also regulate logistics especially as it concerns air and water.

The Following are other regulatory bodies that regulate haulage and logistics operations in Nigeria;

Standard Organization of Nigeria (SON)
Nigeria Customs Service (NCS)
National Agency for Food & Drug Administration & Control (NAFDAC)
Nigerian Ports Authority (NPA)
Federal Inland Revenue Service (FIRS)
Nigeria Agricultural Quarantine Service (NAQS)
Nigeria Shippers Council (NSC)
Nigerian Export-Import Bank (NEXIM)
Nigeria Export Processing Zone Authority (NEPZA)
Nigeria Immigration Service (NIS)
National Insurance Commission (NAICOM)
Central Bank of Nigeria (CBN)
Department of Petroleum Resources (DPR)
SON Conformity Assessment Programme (SONCAP)
Pharmacist Council of Nigeria (PCN)
Federal Airports Authority of Nigeria (FAAN)
Nigerian Marine Administration and Safety Agency (NIMASA)
National Export Promotion Council (NEPC)
National Environmental Standard and Regulations Enforcement Agency (NESREA)
Corporate Affairs Commission (CAC)

The Courier and Logistics Services (Operations) Regulations 2020 is the regulatory framework needed to enhance the operations of couriers and logistics in Nigeria.

The following are excerpts from the regulation you need to know as it concerns haulage and logistics;

The instructions provided in these regulations apply to already licensed companies and those seeking a new license.

The Regulations provide the following definitions for courier and logistics:

Courier: “door-to-door time-sensitive and secured service and includes delivery of documents parcel, merchandise, cargo whose total weight is not less than 0.5 KG and not more than 50KG”

Logistics: “services which include haulage, conveyance, dispatch or delivery of items or goods weighing not less than 50kg” 9 .

The objective of the Regulations is to “ provide a regulatory framework for effective and efficient Courier and Logistic Services licensing processes and procedures and the regulation of the Courier and Logistics industry in Nigeria ”

To achieve this objective, the new regulation provides for the following categories of licenses:

The following are also needed to run a successful Haulage and logistics company in Nigeria;

An application letter to the Permanent Secretary of the Ministry of Interior.
Certificate of incorporation obtained from CAC.
A copy of CAC forms showing statements of share capital structure and particulars of shareholders and directors.
Memorandum and articles of association of the company which will be filed with FIRS
Tax Clearance Certificate of the registered company from Federal Inland Revenue Services.
Evidence of acquisition of business premises (Lease Agreement or C of O).
Feasibility report and Project Implementation Programme (Business Plan) (should be certified or registered with CAC as written by a professional management consultant)
Registrations with the state inland revenue service for necessary tax payments like PAYE

Licencing/ Certification: List all the types of licenses required and possibly who grants them

Corporate Affairs Commission – CAC Certificate
Federal Inland Revenue Services – Tax Certificate and VAT Certificate
Interstate and Intrastate Registration Papers
Stage Carrier Permit – Lagos State Road Traffic Law (for Lagos state only)
License from Courier Regulatory Department of NIPOST (For Courier and Logistics)
Drivers License- Federal Road Safety Corps (FRSC)
Motor Vehicle License
Registration with Trade Unions

Develop a comprehensive Business Plan: State the full items that must be contained and the topics it will cover.

Plan outline:.

Executive Summary
Company Summary
Market Analysis Summary
Strategy and Implementation Summary
Management Summary
Financial Plan

Choosing location

The choice of a location for the haulage and logistics company matters greatly especially as it plays a major role in determining the effectiveness and success of the company. Where the company has more than one truck, which is most likely the case, then provision or arrangement for a parking lot for the trucks, tippers, and trailers should be considered. Ample space where the trucks can twist and turn conveniently because of their body size should be given. The state of the road where the park is located is also very important. Vehicles used for haulage many times are such that have very big tires (though not in all cases) and these tires do damage to roads especially where the roads are already bad, so the parks should be sited at places having good roads with easy accessibility

Goals/objectives

To ensure that goods are carried and delivered as and when due
To be the leading logistics and haulage company in Nigeria through the use of excellent vehicles and competent drivers.
Income generation for the haulage company. This is so because the sole aim of any business is profit maximization and revenue generation. It is also aimed at job creation.
To ensure reduction in the accidents and breakdown of delivery vehicles on the road.
To establish other bases and offices in other parts of the country other than just the city of start-up.
To maximally utilize our delivery channels and boost revenue for the company.

Haulage and logistics is a very risky business line to tow which means that of necessity it must have certain insurance. Many ugly stories surround the haulage of goods, especially petroleum products where the tanker catches fire or falls or bends and the petroleum product spill. There have also been instances where not only petroleum products but also other products as well had either been lost on transit or some form of damage occurred making the transported well to go bad. It is because of these and many more that these companies of necessity must have insurance because of the risky nature of their operations.

Other kinds of insurance include:

General and product insurance : this insurance provides indemnity for any legal actions taken against a haulage and logistics company for third-party injuries or harm to property ensuing from products conveyed by the company and is provided sometimes as alternative activities.
Directors’ & Officers’ insurance: this protects the non-public assets of the company administrators and officers within the event that they in person are sued by workers, vendors, competitors, investors, customers, or alternative parties, for actual or alleged wrongful acts in managing a corporation (Side A). The insurance will give indemnity to the corporation or company for the indemnity they supply to the director and officers (Side B) and conjointly indemnity to the corporate for security category actions (Side C).
Crime insurance: this covers the theft of cash and goods of the company or other products.
Marine Transit insurance: this insurance provides protection or seeks to indemnify the transportation of the factory-made product, raw materials plant, equipment, and alternative assets. This insurance covers products that are transported at intervals in the country of domicile and conjointly imports and exports.
Motor Vehicle Insurance: this provides cover for any vehicle owned or chartered by the corporation.
Corporate Travel insurance: covering workers traveling interstate or overseas on company business or assignment.
Cyber insurance: This is vital coverage that haulage and logistics companies need to contemplate as they leverage more and more on technology in their business models and regular operations. A cyber-attack will considerably impact your organization negatively.

Hiring Process: HR process, getting the staffs

At this stage, you are now ready to employ the people that will work in your company. A haulage and logistics company will require the following for its operations;

Drivers/Delivery Agents
Motor Technicians/Engineers
Human Resource Personnel
Office Assistants
Logistics Supervisor
Marketing/Admin Personnel
Transport/Logistics Manager

Discuss the Sub-Sectors in the Industry:

Subsectors in the industry include the following;

Logistics Services
Air and express delivery services (EDS)
Freight Rail

Other Subsectors would include

Liquid Logistics
Courier and Express Services
Warehousing-Storage and Packaging
Port Terminals
Cold Chain Logistics Solutions
Supply Chain
Inland Waterways and Marine Services

Choosing market Niche (Specific business type)

Chemical and Plastics
Industrial and Manufacturing
Government and Defence
Energy and Petrochemicals
Consumer Packaged Goods (CPG)
Food and Beverage
Electronics
Health, Pharma, Life Sciences
Retail and Commerce

Revenue Model for the Business

The revenue model could differ from region to region just like the business plan or model for operation. Before diving into the revenue model, it is important to take a look at the business environment and make decisions from there.

For this business, the revenue model can vary as the company may get revenue by operating on a lease arrangement with its trucks, it could choose to sub-contract or it may choose to operate independently.

Business Structure: Partnership, sole proprietorship, Limited Liability Company, PLC (state advantages and disadvantages of each chosen structure.

Having the right business structure is vital to business success. It will also affect the business when it comes to filing of tax, borrowing of funds, the attraction of investors.

Types of Business Ownerships to choose from

Sole Proprietorship

Sole Proprietorship in haulage and logistics would imply a structure where a person decides to operate independently as a single person. He owns his trucks and pursues haulage or logistic contracts as a single person. He does not partner with anybody.

Pros of Sole proprietary

Sole proprietorship is the cheapest business structure to run.
The sole owner has complete management over the business, he or she dictates what happens in the business.
The business is taxed as a part of the owner’s taxes, thus there is no possibility of having double taxation.

Cons of Sole proprietary

There is no legal separation between the owner and their business, meaning that the person will be blamed for all the debts and financial obligations incurred by the business.
It’s difficult to attract investors to invest in a sole proprietorship business.
The business tends to be mismanaged by the owner since he is the only one involved in the management of it.

Partnerships

A partnership is a business structure that involves two or more people involved in the management of a business. Contribution is made by all the partners either by bringing capital together or by their experiences and connections. They also share profits and losses. It is similar to sole proprietorships in the sense that it is not a separate entity from its owners. The partnership is not taxed but the income of the partners is taxed.

Pros of Partnerships

Partnership is cheap and easy to operate especially when the partners are few.
Partners share finances, and every individual invests within the success of the business, relieving the burdens that a single person faces in a sole proprietorship.
Usually, partners bring different skills and areas of experience to the business.

Cons of Partnerships

Similar to sole proprietorships, there’s no legal separation between the business and therefore the partners suffer private liability for the business in the eventuality of business failure or debt.
Disagreements among or between partners can have a bad effect on the smooth operations of the business.
It may take a longer time before certain decisions are taken and implemented because of the bureaucracies involved especially where the partners are many.

Limited Liability Companies (LLC)

A Limited Liability Company is a business structure where the owners of the company are different from the business. Here the company is a legal entity that can sue and it can be sued. The owners of the company are personally protected from debts and liabilities of the business.

Pros of Limited Liability Companies

Members are protected against personal liability for any business financial obligations or debts that are incurred.
The owners control the business directly. Hence, can make decisions easier and faster.
There are fewer restrictions on profit-sharing in an LLC, and members will distribute profits from the business as they think is appropriate.

Cons of Limited Liability Companies

Oftentimes, once a member leaves an LLC, the business dissolves, and therefore the remaining members are left with the burden of fulfilling all remaining obligations either to continue to run the business or shut it down.
Members are thought of as freelance and should pay the self-employment tax contributions.
The entire profits of the LLC are subject to self-employment tax.

PLC COMPANIES

This is a business structure that is often called a corporation. It is a freelance entity that’s taxed singly from its homeowners. This kind of business structure is formed by people who constitute shareholders and are given stock when they invest in a corporation. By law, PLC companies should have assets of ₦10 million or more.

Pros of PLC companies

The corporation acts as a separate entity; therefore, shareholders’ assets are protected against any of the business’s debts or legal actions.
Corporations will simply raise funds through the sale of stocks.
Taxes will be filed singly from the private taxes of the corporation’s homeowners.

Cons of PLC companies

Corporations are difficult to operate as there are bureaucracies involved.
Sometimes, companies are likely to be taxed twice. Once the corporation makes a profit and when dividends are paid to shareholders.
There is extra work to fill out as a result of companies being extremely regulated by federal, state, and native agencies.

Steps in Registration of the Business at Corporate Affairs Commission

Step One – Public Search: Search for business entities already existing
Step Two – Reserve a Name: Submit a Business Name you prefer
Step Three – Pre-Incorporation: Register a Company with Your Name Availability Code
Step Four – Post-Incorporation: File Changes to Your Existing Business

Registration steps for the company according to CAC

Check for the availability of the proposed company name you have chosen
Complete pre-registration form and upload relevant documents (Online using Company Registration Portal)
Now registration is end-to-end on the COMPANY REGISTRATION PORTAL (CRP)
with electronic Certificate of Registration and Certified Extract of Registration information

Obtain a Tax Identification Number

HOW DO YOU APPLY? To apply for VAT, you will need to go to the Federal Inland Revenue Service (FIRS) office that is closest to your registered address. The following documents should be provided: – 1 Memorandum & Articles of Association 2 Certificate of Incorporation: CAC2, CAC7 3. Duly filled and officially stamped VAT form 001 4 Utility bill 5. Application letter on company letter headed paper

If your business is a registered business name, and not a limited liability company then you will need to provide the following documents;

1 Business Name Registration Certificate 2 Duly filled and officially stamped VAT form 001 3. Utility bill 4 Application letter on business letter headed paper

You should take the original copy and 2 photocopies of each document. The originals are required for sighting only. 1 copy will be left with the FIRS, and 1 copy will be stamped and signed by an official of FIRS as evidence that you have made an application.

Mistakes to avoid

Disregarding customer’s feedback
Unprofessional customer services
Wrong Marketing strategies/ moves
Poorly serviced Vehicles
Unlicensed Drivers/Vehicles
Incompetent Employees

Equipment Required-Plant & Machinery

Competitive players:.

GIG Logistics
Courier Plus Services Limited
FedEx Nigeria
Cross Country Courier Services
Creseada International Limited
United Parcel Services Limited
XPO Logistics

Name the Business: Offer tips on the name of the business including domain, name of the offer system.

Choose Your Market Niche
Conduct adequate and proper Market Research
Prepare a good and well detailed Business Plan
Ensure registration of your Business
Buy Vehicles, Motorcycles, etc for your company
Get customers which goods you will be hauling depending on your niche
Be Sure to Maintain your trucks

Cost of Starting a Haulage and Logistics company In Nigeria

NOTE: Starting a company of such in Nigeria might cost between ₦20,000,000 to ₦25,000,000 on a minimum startup cost.

Gross Profits Calculations

To get your gross profit calculation, you will need a service of an outsourced accountant or let your in-house accountant conduct proper financial statement preparation.

Raising of Fund for the business/Sources of Funding /Financing the Business

To raise funds or to do an analysis of the capital structure of this business in Nigeria, it is mainly done through commercial bank funding for a majorly long-term duration. Sometimes, some angel investors can buy the idea of the business owners and invest in the business.

If the business has taken off and is now a listed company on the stock exchange floor, members of the public can subscribe for shares in the company.

Bootstrapping (self-funding) is another major source of capital for this kind of business as it will give it much leap. Funding (capital firm investing for exchange of equity) some investment companies give out money for business too as discussed above. Other means are: –

Private Equity
Friends/Family

Recommendations for the business

Anyone having the capital required is highly advised to venture into this business, having done the proper checks one needs to do. There are already existing companies of this nature but much more is still required. We highly recommend you do this business but please ensure that insurance is done as well as proper registration also carried out.

Call to Action

For swift and timely action to be taken, you need to contact us on 08023200801 or email us on our website email link. We are always available and visible at 5 Ishola Bello Close, Off Iyalla Street, Alausa Ikeja. You should contact us for in-depth analysis, market knowledge, and business plan breakdown for your business.

The basics of commencing a haulage and logistics company have been discussed adequately in this article. The prospects, the policies, branding, means of financing, applicable legislation governing the business, competitors, etc.

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How To Start Haulage Business In Nigeria

Table of Contents

Understanding the Haulage Business

Conducting market research, registering your business, acquiring haulage vehicles, hiring drivers and staff, setting your prices, marketing your business, how to start haulage business in nigeria: a comprehensive guide.

Starting a haulage business in Nigeria can be a lucrative venture for entrepreneurs who are willing to put in the time and effort required to build a successful business. However, like any other business, starting a haulage business requires careful planning, research, and investment. In this article, we will provide you with a comprehensive guide on how to start a haulage business in Nigeria.

Before starting a haulage business in Nigeria, it is important to have a clear understanding of what the business entails. Haulage business involves transporting goods, materials, or equipment from one place to another. These goods can be transported using different means such as trucks, trailers, containers, and other vehicles.

Haulage business is a vital part of the Nigerian economy, as it plays a major role in the movement of goods across different parts of the country. The demand for haulage services is high, especially in the manufacturing, construction, and agriculture sectors.

The next step in starting a haulage business is to conduct market research to identify potential customers and competitors. This will help you to understand the demand for your services and how you can differentiate your business from other players in the market.

You can start by identifying the major manufacturing, construction, and agriculture companies in your target market. This will give you an idea of the type and volume of goods that need to be transported. You can also reach out to logistics companies to understand the demand for haulage services in your target market.

Registering your haulage business is an important step in starting your business. You need to register your business with the Corporate Affairs Commission (CAC) and obtain a Business Name or Incorporation Certificate. This will give your business legal standing and protect it from legal liabilities.

You will also need to obtain relevant licenses and permits from the Federal Road Safety Corps (FRSC) and other regulatory bodies. These licenses and permits will enable you to operate legally and avoid penalties or fines.

One of the biggest investments you will make in your haulage business is acquiring vehicles. You will need to purchase or lease trucks or trailers that are suitable for transporting different types of goods. The type and size of vehicle you will need will depend on the type of goods you intend to transport.

You can purchase new or used vehicles from dealers or auctions. It is important to ensure that the vehicles are in good condition and have all the necessary documents and permits. You can also consider leasing vehicles if you do not have enough capital to purchase them outright.

Hiring experienced and reliable drivers is crucial to the success of your haulage business. You need drivers who are familiar with the routes and regulations governing the transportation of goods in Nigeria. You can hire drivers through recruitment agencies or referrals from other logistics companies.

You may also need to hire administrative staff to manage your business operations such as accounting, logistics, and customer service. You can hire staff on a full-time or part-time basis depending on the size of your business.

Setting the right prices for your haulage services is important to attract and retain customers. You need to consider factors such as the cost of fuel, maintenance, insurance, and other overheads. You also need to factor in your profit margins and the competition in your target market.

You can conduct research on the prices charged by other haulage companies in your target market to determine the average price range. You can then price your services competitively while ensuring that you make a profit.

Marketing is an important aspect of any business, including haulage business. You need to create awareness for your services and attract customers. You can use different marketing channels such as social media, email marketing, and outdoor advertising to reach your target audience.

You can also attend trade shows and conferences to network with potential customers and suppliers. Word-of-mouth marketing is also effective in the haulage industry, so you need to provide excellent services to your customers and encourage them to refer you to others.

Starting a haulage business in Nigeria requires careful planning, investment, and hard work. You need to understand the industry, conduct market research, register your business, acquire vehicles, hire staff, set your prices, and market your services. With the right strategies and determination, you can build a successful haulage business in Nigeria.

Do I need to have experience in the haulage industry to start a haulage business in Nigeria? No, you do not need to have experience in the haulage industry to start a haulage business. However, it is important to conduct thorough research and seek advice from experts in the industry.

How can I finance my haulage business in Nigeria? You can finance your haulage business through personal savings, loans from banks or microfinance institutions, or partnerships with investors.

What types of vehicles are suitable for haulage business in Nigeria? The type of vehicle you will need for your haulage business will depend on the type of goods you intend to transport. You can use trucks, trailers, containers, and other vehicles.

How can I ensure the safety of my vehicles and drivers? You can ensure the safety of your vehicles and drivers by carrying out regular maintenance and inspections, providing training to your drivers, and adhering to road safety regulations.

How can I differentiate my haulage business from competitors? You can differentiate your haulage business by providing excellent customer service, offering competitive prices, maintaining high standards of safety and reliability, and leveraging technology to enhance your services.

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Starting a trucking haulage business in nigeria, starting a haulage business in nigeria.

Trucking business can also be called haulage business. It involves the moving of goods from one place to another with large vehicles like trucks, tippers, trailers e.t.c. Starting a haulage business is a very good one because it is one of the most needed businesses in Nigeria. Transportation is a very essential factor in any economy, Nigeria’s transport system have grown worse in the past few years, the rail way networks are damaged, and we are left with no option but to transport goods through vehicles.

Haulage business helps in this way to transport goods, heavy materials, equipment from one place to another. Without this kind of business in Nigeria, farmers will not be able to transport the items harvested to places where they are needed, factory and companies will be unable to transport raw materials, so it is very essential in a country like Nigeria because it is meeting a need and solving a problem.

Starting this business is also good because you will definitely find a place in the market. No matter the number of players in the market, if you can make your business unique and focus on your strength, there is surely a place for you. You might be thinking there are many haulage businesses in Nigeria and you don’t have any need to meet again. But I tell you that there are still some needs that are not satisfied that you can satisfy if you eventually start the business.

You might want to ask me that , Can anyone start a haulage business ? I would say Yes, anyone can if you have the right knowledge and information you need for the business, it is not about money, if not, I would advise you not to start.

Starting a Car Rental Business in Nigeria

Although haulage business requires a lot of money, that is, it is capital- extensive, yet I do say capital is not the first thing in any business, even though it is very important, yet it is not the first.

STEPS TO STARTING A TRUCKING/HAUALAGE BUSINESS

Evaluate yourself : This might sound stupid, but this is actually the first thing to do if you want to run a successful business. Let’s ignore haulage or trucking first, before you start any business, you must sit down, evaluate yourself, weigh your strengths and weaknesses and conclude if you really want to start a business. You should ask yourself some questions like, Am I ready to start a business?, Do I have the skills needed to run a business? The capital involved in haulage business is too large for you to misbehave in the business or for you not to be sure of yourself. Apart from the capital involved, haulage business is a very risky business, Although every business have their own risk but there is a high tendency of risk in haulage business.
IDEA : This is also very important when starting a trucking business. I am very sure you must have seen other trucking business and where they have failed . This is the point where you use your brain to figure out what you want your own business to look like, you must have a business idea. I am very sure you don’t want to run your haulage business the way your competitors are running theirs so there is a need for you to think out of the box of how you can make your own business unique and have an upper edge over your competitors.
RESEARCH: After thinking of an idea, the next thing is to research on the idea. You need to know about all what haulage entails, read books, get mentors or learn from people that are already in the business. Make research about the market, your potential customers, technologies needed for your business , how your business will be different from your competitors and what will make it different. You must know at least ninety five (95) percent on the haulage business you want to start.
MAKE IT LEGAL : After making relevant research and gotten answers and feedbacks about your haulage business, the next step is to do it the legal way. This is done so that your idea will not be stolen by someone else. You can hire a lawyer to help you with this stage. The following must be done;

Determine the structure you want your haulage business to operate, do you want to run it alone ( sole proprietorship) or it would be owned by a particular number of persons ( partnership). After determining the structure of your trucking business, you need to give it a name, you have to do your research to know if the name you intend to use can still be used. Then you can proceed to the Corporate Affairs Commission ( C.A.C) to register your business. Get necessary permits and licenses, federal and state tax ID and open a business account where the business money goes.

WRITE A BUSINESS PLAN : A business plan is a formal written document that contains business goals and how the goals will be achieved. It summarizes the goal of your business. To start a haulage business, you need a business plan which will contain the executive summary that gives the summary of your business plan and also state your vision and mission statement.

Your business plan will also contain a section where you give your company overview, how you intend to run your business, your business goals and everything about your business. The next section contains a clear description of your haulage service, for example, maybe alongside with moving goods and equipment, you intend to do logistics consulting or packaging, it will be included in this section.

The next stage is to analyze your market, before this stage , I believe you must have researched about your market, how your products will compete and stand out, your customers, your competitors. All these will be contained in this section of your business plan. Also you must analyze your strengths, weaknesses, opportunities and threats (SWOT) in this section.

Your business plan will also contain how you intend to sell and make people know about your haulage service, the strategies you have decided to adapt, how you plan to sell, your selling cost, cost of advertising and promoting your business.

The last section of your business plan is where you analyze the financial part of your haulage business, you can hire an accountant to help you with this section. It contains realistic financial information about haulage which contains cash flow statement, projected income statement, balance sheet (statement of financial position ) for the next three or five years.

A good business plan might attract investors to invest in your haulage business so you can hire a consultant to help you draft one.

GET THE REQUIRED FUND : As stated earlier in this article that haulage business is capital expensive, it is not a business that requires little amount of money to start it. The cost of purchasing trucks alone can finance like three business because of its expensive price not to talk of securing a location, buying necessary machines and so on so it requires a whole lot of money.

As an intending haulage business owner, if you don’t have all the capital required to start, there are other means in which you can get money from, some are borrowing from family and friends, you can also obtain a bank loan, apply an angel investor, or raise money through crowd funding.

Money is very important in a haulage business so you must be ready to spend a lot of money.

SECURE A LOCATION : Securing or finding a good place to locate your business is not as easy as many people think because you have to consider a lot of factors.

One of the factors to be considered before securing a place for your haulage business is the nearness of the location to your potential customers, your haulage business should be located around or not too far from your customers vicinity.

Another thing to consider is how much it will cost you to establish your business in a particular environment. Social infrastructure and amenities should also be considered, for example, you can’t afford to establish your haulage business in an environment where the road is bad because you know how much it can damage your trucks. You also have to be on the look out for the nearness of any other haulage business to your own.

All of these and many more has to be considered before deciding the best location your business will be established.

EMPLOY PEOPLE :After securing the best location for your business, the next thing is to employ people since you can not work alone, you can’t be the one driving the trucks and also in charge of money, you need people.

A lot of people think that truck drivers are the only employee that an haulage business needs to hire and he can handle the rest by him or herself. But I tell you that is a big lie, if any haulage business owner tries it, the business will fall and crumble. The relevant employees you need to hire in your haulage business are drivers, the material handlers ( those that will be in charge of packing goods and handling materials, they are also called fork lifts operators), an accountant that will be in charge of the finances of the business, a front desk officer who will always to available to attend to customers, take their order, receive their complaints, answer their questions, and take note of their feedbacks, marketing and sales executive also known as business developer who will be in charge of making the world know about your business, and then a freight packing and logistics manager who will supervise the packing of goods or equipment and make sure it reaches the final destination where it is needed, a warehouse operator who will be in charge of the warehouse is also needed.

This is the stage where you choose the type and kind of people that will work with you. You have to be very careful in selecting employees in this type of business. Haulage business require professional, hardworking, honest and customer driven employee, employees that will work hard to achieve the business’s vision is what you need, especially the drivers. For example, you would not want to give your truck to a driver who is a drunkard or who drives recklessly who can fall off the road wih customers goods or equipment in the truck, this would lead to a great damage to the business. You need a good driver who is honest that you can trust to maintain your truck.

START RENDERING YOUR SERVICE :After all the measures above have been put in place, then you can start rendering your service, moving people’s goods and equipment and generating revenue. Render services to meet your customers need, your services should be quality and should make your customers happy so that they can continue patronizing you. For your sales to be effective, you have to know what the customers want, listen to them , ask them questions and answer their question, gladly accept feedbacks and act accordingly.

This stage is the stage where the marketing and sales executives need to put in their best to make sure that people know about the haulage business, either by building public profile, writing articles or blogs, online marketing but their job is to bring potential customers to the business.

GROW YOUR BUSINESS :As a haulage business owner, don’t be comfortable with the state of your business, your business can perform better if you have the mindset of growth. You must grow your business to keep it alive because a stagnant business will be wiped away sooner or later. One of the ways to growing your business is to improve your marketing skills to acquire new customers and retain old ones. You can also grow your business by improving the quality of your service.

In conclusion, starting a haulage business will be an easy one for you if you can follow the steps that are listed above.

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How To Start Lucrative Haulage Business In Nigeria

Have you heard about Haulage business in Nigeria? Well, haulage is one of the best business you can do in Nigeria despite the hardship involved. Transportation of goods from one location to the other has been a major challenge in Nigeria due to the very poor state of the Railway system in the country. The only means through which goods are transported effectively right now is by the road and that is why haulage business is booming in the country. You can save yourself from the stress of starting a new business – CLICK HERE to invest with me. The profit is bountiful and guaranteed.

Haulage means the transportation of goods from one part of the country to the other. Haulage services is rendered using vehicles that is capable of lifting much quantity of goods at a time. Such vehicles are: tankers, trailers, cranes, tippers, trucks, etc.

Some of the products that can be transported through haulage services are:

Petroleum products such as Kerosene, Liquefied Natural Gas, Premium Motor Spirit, Engine Oil, Diesel, and any other related petroleum products.

SEE ALSO: How To Start Petroleum Haulage Service Business In Nigeria

Consumer goods from the manufacturing companies. All consumable goods such as foods and drinks from the manufacturing plants to the distribution or retail destination.

Sand and stones from the dredging sites and quarry sites to the construction sites.

Building materials such as cements, woods, irons, ceiling boards, corrugated sheets, and every other construction materials of these kinds.

Containers from the seaport to the final destination or from destination to the seaport. There are thousands of other goods transported through haulage services that are not mentioned here.

Opportunities In Haulage Services

The opportunities in this sector of the economy is many and mouth watering and below is just the major ones you can take advantage and invest in right away.

Haulage Company

The first that comes to mind is owning a haulage company with your own fleet of vehicles and using it to transport goods for individuals and companies and getting paid for the services rendered. This is a very profitable aspect of haulage business but also comes with higher risks.

Let us look at the profit first using the 40ft trailer as the study case. The table below shows the cost charge to transport goods using 40ft trailer from some of the major cities in Nigeria to the other. It also shows cost of fueling and other costs as well as the take hope profit after expenses.

With this rough estimation, you have been able to understand what profit possibility that is opened to you if you decides to setup your own haulage company in Nigeria.

Risks and Challenges

Like every serious business, there risks in involved in operating haulage services in Nigeria and understanding these risks will help you plan your investment properly. Below are some of them.

1. Loosing your trucks due to bad road

With the state of roads in Nigeria, most people will think twice before delving into haulage business. Hardly can you travel any major roads in Nigeria without seeing tens of truck breakdown on the roads. Some fall and somersaults into creeks and rivers due to bad roads.

2. Drivers habits

Most drivers have the tendency to cheat by all mean. If this is not properly handled or you don’t have the mechanism to take care of this, your drivers have the singular ability to rundown your haulage company to to the ground within short period.

3. High cost fueling and maintenance

From Lagos to Port Harcourt will guzzle a whooping N150,000 worth of diesel to and fro. When you subtract that from the amount you charge, you find out that most of the money goes to fueling alone. You run the risk of charging much and earning little.

4. You need minimum of 5 truck

To have your haulage company registered, you need to acquire minimum of five trucks. Buying one truck isn’t easy let alone five. So, higher start up cost means higher financial risk.

Other Facts To Consider In Haulage Business

1) You MUST take into consideration the maintenance cost, insurance cost, Niger Delta permit papers, cost of paying salary to drivers etc. These take up a significant cost of your business and it is not all pure profits.

2) There is no haulage company/agent that I know of in Nigeria that would payout 230,000 Naira per truck. Considering the best haulage which is consumer goods and edibles, there is no probability of a 500,000 Naira payout even on a 40 foot trailer.

3) We ourselves payout close to 130,000 Naira for a 20 footer and maybe 200,000 – 230,000 Naira for a 40 footer, depending on the number of runs that we take.

4) Fuel is a significant cost, and also getting pure diesel instead of contaminated diesel is a very high challenge. Contaminated diesel wears down your engine extremely quickly, and you will be faced with high maintenance costs.

Fleet Managers

Fleet Managers or Haulage Agents are owners of registered haulage company who specializes in handling other peoples fleets in addition to their own. While some really does it as addition to their own fleets, others specialize exclusively in handling other peoples trucks.

It is the same as running your own haulage transport company and comes with almost the same level of risks. The major difference is that the cost of acquiring those trucks is passed over to the truck owners while the maintenance most times goes to the agent who manage and maintain the vehicles and pay agreed commission to the truck owners on monthly basis.

Leasing Out Trucks

This is the aspect some investors finds more convenient. All you need to do is to acquire the trucks, starting from one to as many as you can afford. Get a reputable haulage company who will manage it and pay you monthly revenue per truck.

No stress of managing the truck, no drivers troubles, no fueling cost; just get your money at the end of the month. Imagine you have 10 40ft truck under good management that pays you N200,000 monthly each, you will be making N200,000 x 10 = N2,000,000 monthly without management stress?

The Following Conditions Prevails in Leasing System

1. You buy the truck, get it insured, get it registered and ready for business. 2. You lease the truck for an agreed amount that will be paid into your account on monthly basis, and the truck managers take care of the driver and maintenance.

3. Fleet managers take the truck for you and pay all income into your account, you are responsible for the driver and maintenance and you pay the managers 20% of your monthly income while they manage your truck.

So, go ahead and fire up your investment portfolio with one of a kind investment opportunity in haulage business in Nigeria. Share your opinion, your ideas or ask questions about this business by dropping us a comment below.

This is the first of my series of posts in haulage business in Nigeria. Watch out for more in subsequent posting.

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57 Comments

What are the most effective ways of handling or rather managing the risk of haulage bisness in Nigeria

Good management… Do the right things at the right time

Good morning and thank you for the write up. I have a 6tyre 18tons truck. What are my options, I have a driver too. Please drop a number or email to get across to you. Thanks

can i get your contact or office address, i will to do a business with you .

Thanks for this info may God continue to enrich you. Please can i know how much it will cost to buy a truck and the requirements and cost of registering it with the company that will help me manage it. thanks

Am intrested in this business and want to start with one truck but want to know how much it will cost to buy one and the registration thanks COMFORT W.

Thanks for the insightful article. I'm interested in leasing out and can wish to start with 2 trucks. I haven't bought the trucks. Can you tell me how much it will cost and how much you will pay me monthly for my investment?

Come over to the office for a talk

thanks for this

@Darlinton, pls where is ur office? (address I mean).

Thanks Mr. Darlington for this wonderful post. My dream of a haulage company is very much still alive. I live in Jos, owns a 10 tyre truck (20)ft. I am really not doing well @l wit it. I spend more into than profiting. I need advice, because I am thinking of selling it.

I’m trying to open a haulage company if your interested in partnership let me know

hi bella i am interested

Thanks for this post. I'm interest in leasing out 2 trucks or consider the N5M option. kindly inbox to negotiate further.

Thanks for the info. I am considering the N5m option or leasing out 1 truck. Can I have the details please?

Hi, Darlington, I am really inspired by your write up, does your service involve buses? I just started a logistic business and I currently have two buses. If yes, I would like to know the process in leasing them out.

Yes, we deal on that too. Use the contact from to contact me

Hi Darlinton, I sent you a message via contact form as you requested since Feb 4th, but I am yet to get a response. I want to know the process of leasing out my buses.

I responded and requested some information about the buses from you but didn't get your reply. Maybe the message didn't deliver. Sorry about that. I want to know the make, the general condition, and the reason it is slow, send your reply to admin [at] palness.com

How do I contact you?

you make straight investment of N5million with us, we pay you N250,000 monthly as profit for 20 months. You get your N5million investment capital back at the end of the 20 months or anytime you wish to terminate after six months. Does this mean i will make a 5million naira as profil and still have my 5million i invested

That's exactly how it is. The N250,000 paid every month is your profit on investment

Hi Darlinton,

Please can I have your contacts or how do we see you ?

Hello Darlinton, Pls can i have your contact so we can discuss business. Thanks

I currently have a 40ft to lease

HELLO SIR, CAN I HAVE YOUR CONTACT DETAILS TO DISCUSS? REGARDS

Hello Darlington I have a 30tons truck for quarry/sand carriage. Do you manage this in your haulage too? If yes, what will the monthly returns be like?

pls can i get ur address for more talk ,cause this is more than talkn on phone or media

how much does a truck cost

Mr Darlington… Please send your contact.lets discuss

Good morning sir Darlington, I am into this business as well but I have got a serious challenge ,,,do u mind we chat well on whatsapp ,,,or u inbox me ur office address @ 09028288029 Thanks sir God bless,,,

Thanks for this information. I would like to have a chat with you one on one.

I want to invest, but I don’t know how to reach you Darlinton

Hello. Please how do I learn this business? U have tutorials for it?

hi, I have Mercedes 612 and 608 and I want to register with it, how much will I profit monthly in each ? and what are the registration processes?

Please kindly send me an email and let’s start from there..

I am really interested in this and i think i can start immediately.

Which aspect are you interested in? Let me know so that I’ll know which email to send you. Thank you

hi my name is chidi i have a bus i would like to put out in leasing this is my i want to buy a truck too can you tell me the one that is best for me to buy thank you

Please contact me and lets start business I m interested

Best Regards

Please send me your contact details so that we can start discussion

I am really interested in this I’ll like to start something

Thanks Iyke

Please send me your contact details for discussion I am really interested in the straight investment of N5million to receive N250,000 monthly as profit for 20 months

Truck is available but how do I get load

where is the truck?

please I have two LT buses, but how do I get loads to deliver. thank you for your response.

Thanks for your kind gesture in writing this article. God bless you real good IJN Amen Pls kindly send me your contact details. Or pls chat me via WhatsApp

Hello Mr Darlington, Please kindly send me a mail with the email provided. I would want us to discuss business and probably schedule a meeting. Regards.

Hello Mr Darlington, Please kindly help drop a mail in the email i provided. I would like to discuss or probably arrange for a business meeting.

Thanks you. Regards

Hello Mr Darlington, please kindly drop a message for me via the e-mail provided in the comment box so i can get your contact and discuss possibe business relationship. Thank you.

Good day Mr Darlington how can I contact you for prospective business start up (haulage business)

can you pls send me your contact so we can talk thanks

Greetings to you, mr Darlington. I read throgh your write-up here and it’s very very impressive. It got show; that you are an expert in haulage business.please may l ask you, do you conduct training for beginners or apprenticeship? Please if you do,how can one register? I will appreciate it if you reply. Thanks.

Thanks for the eye opening, interested in something similar but the capital is my problem, but one can also start small with small trucks or load carrying vehicles. kindly give the breakdown of the smaller trucks to also have the idea thanks.

Good Day Mr Darlington, I am interested in the haulage business however i don”t have requisite experience, so i prefer to but and lease to get monthly return on investment. Therefore how do i start Best Regards, Rotimi

I’m a local American that has teamed up with a local Nigerian. We buy transportation vehicles from the States and sell them to Nigeria based on what you are looking for. You would have to give me specifications of what you want and type of vehicle you need and then I will be able to give you a quote.

let me have your email for the car from america

Can I run the business mini truck like canter for that matter ?

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Business Plan Hub

Haulage Business Plan In Nigeria Feasibility Study

August 13, 2020 by admin 11 Comments

Haulage Business Plan In Nigeria – Are you in interested in going into Haulage business but you don’t know how to start or run it . Do you need a detailed sample of a trucking business plan or feasibility study? I guess you are in the right place because we’ve got what you have been looking for. GET YOUR Haulage Business Plan In Nigeria / Feasibility Study. To place an order, pay N10,000 to

Account Name: Oliver Uwadia

Account Number: 3094192129

Haulage Business Plan In Nigeria Latest Edition feasibility studies proposal

After payment text your name, your e-mail address and bank teller number or your transfer reference number to 08107015636 and A Copy of our Haulage Business Plan In Nigeria FEASIBILITY STUDY PDF will be send to your email.

The Haulage Business Plan / Feasibility Study in Nigeria Can Also Be Used For Bank Loans, Grants and lots more

Haulage Business Plan In Nigeria TABLE OF CONTENT

Executive Summary 3 Introduction 4 Business Description 9 Products and services 9 Competitive Advantage 12 Market Research 15 Competitor Analysis 15 Sales and Marketing Plan 16 Operational Plan 17 Business Risk 20 Management and Structure 20 Financial Plan and Projections 21

Haulage business and Logistics Business is the same and this kind of this business is that popular not many people go into this kind of business but the funny thing is that haulage business is among the most productive and lucrative business in Nigeria.

Haulage Business is a capital intensive business with option of expansion although massive investment is required, after expansion you are sure of making your return of investment. We did a lot of research and we can up with this article haulage business plan in Nigeria, the primary aim is to educate you and bring the basic information you will need if you have interest in starting up your own haulage business in Nigeria.

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Are you among those interested in haulage business in Nigeria but you have no idea how to go about it, then I guess you are in the right place. This article is for you just read and follow the instructions then I guess you are good to go. Before going into Haulage Business Hurry now, TO GET YOUR Haulage & Trucking/Logistics Business Plan in Nigeria Feasibility Study. Simply order yours by paying N10,000 to

Haulage business is the same all over the world, the way of operation as well as other important modalities in trucking business, no matter the country or location the similarities doesn’t change

The primary reason of this article is to show you some of the factor you have to consider before setting up your business. These steps we are suggesting to you will actually help you business be successful if done right.

In this article we did a lot of research and we bring you other money making method that will benefit you, Haulage business is only lucrative it you know the right things to do, the following listed below can help you if you want to write your own business plan maybe for research in summier or school paper

How To Start Haulage And Trucking Business In Nigeria

Before going into Haulage business there are many factors you should consider before setting up your haulage and trucking or logistics business in Nigeria, these steps can be adopted by anyone as long as you are ready for the challenges that comes with it.

Get A Business Plan

Before going into this business you need a business plan because this business is capital intensive business that simply means you don’t want to go into the business without any kind of preparation or plan, you get a ready made plan with you, it makes things a lot easier for you. If you get the right plan, it tells you the capital to invest, your location, your route, truck and vehicle types, how many you will need for start up, number of personnel to employ and lots more. your business plan should be able to outline these features of the business, you have different options for your feasibility, either you write it yourself, hire an expert to write for you or you can buy from us, Our haulage business plan in Nigeria is well written, and it includes financial projections, you can use it to apply for loans and grants as well as use it for your business proposals.

This is a major factor when starting your business and this part must be included in your business plan. Where you location is matters to your business. You must site your business in a location or state where your haulage/ trucking business can grow. There are many states to which has a good location. In every business a good location guaranteed its success.

Raise Capital

haulage business is a capital intensive business; what this means is that you will have to invest a lot of money for starting up of this business. But the good news is that you can raise capital using our haulage business plan in Nigeria to apply for grants as well as banks loans, given that we also included a financial projection, it gives an idea on the amount to invest as well as the amount to use in sustaining the business, rising your capital is the most among other things or factors that must be considered before starting your business.

Type Of Equipment Needed –

Before starting your Haulage & Trucking Business in Nigeria, you need to get in your heavy machinery. These equipment forms the bases of your business operation, here are the types of equipment you’ll need;

Trucks Flatbed trailers Heavy duty machinery Big containers Silos etc….. These equipment are really important, since what will be transported are heavy goods.

Business Registration

Every business must be registered before it can successful kick off. This aspect is an important aspect because it covers a lot of areas sure as rules and regulations guiding haulage and trucking business, licensees and lots more.

Market Research

This is also important factor to consider. Before going any kind of business you need to research the current state of the market you are going into, that why you need our business plan because all have been done for you all you have to do is get the business plan.

GET YOUR Haulage Business Plan In Nigeria / Feasibility Study. To place an order, pay N10,000 to

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How To Start Petroleum Haulage Service Business In Nigeria

Looking to learn all about Petroleum Haulage Service Business in Nigeria and getting a haulage business plan to kickstart your operations?

The petroleum haulage service business in Nigeria involves the transportation of petroleum products such as diesel, petrol, and kerosene from the refineries or depots to the final consumers or retailers. This business is very lucrative as petroleum products are always in high demand.

How To Start Petroleum Haulage Service Business In Nigeria

In this article, we will provide a step-by-step guide on how to start a petroleum haulage service business in Nigeria.

Step 1: Conduct a Feasibility Study The first step in starting a petroleum haulage service business in Nigeria is to conduct a feasibility study. This will help you determine the viability of the business in your chosen location, the market demand, the competition, and the required capital.

Step 2: Register Your Business After conducting a feasibility study, the next step is to register your business with the Corporate Affairs Commission (CAC) in Nigeria. This will give your business legal backing and enable you to operate without any legal hassles.

Step 3: Obtain the Required Licenses and Permits To operate a petroleum haulage service business in Nigeria, you need to obtain the necessary licenses and permits from the Department of Petroleum Resources (DPR) and the Federal Ministry of Transport. These licenses and permits include the Petroleum Tanker Driver’s License, the Road Worthiness Certificate, and the Dangerous Goods Permit.

Step 4: Acquire a Petroleum Tanker Truck You will need to acquire a petroleum tanker truck to transport the petroleum products. The type and size of the truck you need depend on the volume of petroleum products you intend to transport. It is important to ensure that the tanker truck is in good condition and meets the safety standards set by the DPR.

Step 5: Employ Qualified Drivers and Conduct Regular Training You will need to employ qualified and experienced drivers to operate the petroleum tanker truck. It is important to conduct regular training for the drivers on safety measures, defensive driving, and product handling to ensure that they comply with the safety regulations set by the DPR.

Step 6: Obtain Insurance Coverage It is important to obtain insurance coverage for your petroleum tanker truck to protect it from accidents, theft, and damage. The insurance should cover third-party liability, comprehensive coverage, and product liability.

Step 7: Build a Network of Customers To succeed in Nigeria’s petroleum haulage service business, you need to build a network of customers who will patronize your services. You can do this by networking with petrol stations, filling stations, and other petroleum product retailers.

Step 8: Establish a Maintenance and Repair Schedule To ensure that your petroleum tanker truck is always in good condition, it is important to establish a maintenance and repair schedule. This should include regular oil changes, tire rotations, and brake inspections.

BEST TRUCKS FOR HAULAGE IN NIGERIA

The choice of trucks for haulage in Nigeria depends on several factors such as the type and volume of goods to be transported, the terrain and road conditions, and the distance to be covered. However, some of the best trucks for haulage in Nigeria include:

Mack Granite: The Mack Granite is a heavy-duty truck that is ideal for long-distance haulage. It has a robust chassis, high horsepower engine, and spacious cab that provides maximum comfort for the driver.
Mercedes-Benz Actros: The Mercedes-Benz Actros is a premium truck that is known for its reliability, fuel efficiency, and safety features. It is ideal for hauling heavy loads and operates well on both smooth and rough terrains.
Volvo FH: The Volvo FH is a versatile truck that is suitable for both short and long-distance haulage. It is known for its advanced safety features, fuel efficiency, and comfortable driving experience.
DAF XF: The DAF XF is a high-performance truck that is popular among haulage companies in Nigeria. It has a spacious cabin, powerful engine, and advanced safety features that make it suitable for long-distance haulage.
Howo A7: The Howo A7 is a Chinese-made truck that has gained popularity in Nigeria due to its affordability and durability. It is ideal for hauling both light and heavy loads and has a fuel-efficient engine that helps to reduce operational costs.

In conclusion, the choice of truck for haulage in Nigeria depends on several factors, including the nature of the goods to be transported, the terrain, and the distance to be covered. The trucks mentioned above are some of the best options available in Nigeria and offer a combination of reliability, durability, and fuel efficiency.

In conclusion, starting a petroleum haulage service business in Nigeria requires careful planning, adequate capital, and compliance with the safety regulations set by the DPR. By following the steps outlined in this article, you can successfully start and operate a profitable petroleum haulage service business in Nigeria.

Looking for the best haulage and logistics business plan?

Our complete haulage and logistics plan with delivery bikes in Nigeria are now up for downloads, you can make it yours now. This business plan contains all necessary sections of an acceptable business plan like the financial projections, cash flow statement, and SWOT Analysis.

In Nigeria, goods delivery service is one of the most in-demand services, and getting a sample or complete business plan for goods delivery business plan is one of the best things to do.

You can use this haulage and logistics business plan for NIRSAL Loan application, BOI, BOA, other commercial banks or other funding schemes projects.

SAMPLE FEASIBILITY AND BUSINESS PLAN FOR LOGISTICS AND HAULAGE

1.0. Industry Overview

The Freight Packaging and Logistics Services industry is an industry that tasks itself with the responsibility of providing packing and crating services for the movement of goods. The industry comprises of companies that provide a joint service of freight consignments, preparation of trade document, packing, crating and other processes involved in preparing goods for transportation and also in providing logistics consulting services.

Growth in this industry is directly proportional to growth in some sectors and some other factors, for example, growth in the manufacturing sector, consumption, international trade and also increase in technology reliance will mean growth for logistics consulting and advisory services. But technology might seem a threat as it can also cut of some jobs for the industry.

The Freight Packing & Logistics Services Industry is indeed a very thriving industry in most countries of the world. It is a major sector of the economy of Nigeria and a whooping sum of well over billion annually from more than 5,000 registered logistics services companies located in the Nigeria. The industry growth is obvious by the way it suffices as one of the industries that provide the majority of the jobs within the country as it is responsible for the employment of well over 31,785 people. Packing and crating involves putting freight into various containers that preserve the goods to be shipped, these could range from crates, pallets and plastic wraps. Many companies also offer specialized services, which includes packaging unique products such as industrial equipment, artworks and weapon systems as this also distinguishes them from each other and gives the customer the luxury of choice depending on what good needs to be shipped. Most of the companies in the industry may also offer freight consolidation, meaning they combine many frequent, small shipments that are bound for a similar geographical region into a single large shipment to reduce per-unit shipping costs and other miscellaneous.

No doubt starting and operating a freight packing and logistics services company is always capital intensive and seems a herculean task because it is challenging, but the truth is that its rewards in terms of profit numbers are astronomical at the same time. But despite it being capital intensive, the industry is open for both big-time investors who have the funds to start the business with a lot of employees from a big oﬃce facility and aspiring entrepreneurs who may want to start from a shared oﬃce space and few employees.

2.0. Executive Summary for haulage and logistics business plan

MoveAndHaul Freight Packaging & Logistics, Co is a registered and licensed Freight Packaging & Logistics Services Company that will be based in Apapa, Lagos. We are in business to provide services involved in freighting and cargo transporting ranging from packing goods for transportation, crating goods for transportation, and wrapping goods for transportation, freight consolidation, preparing trade document, storing goods prior to and after freight, physical distribution consulting and logistics consulting. MoveAndHaul Freight Packaging & Logistics. Co has been able to get its hands on all-important licenses and permits to operate throughout the country and other countries where goods are likely to be imported from which include China, United States, India, among others. We will ensure that we abide by the rules, regulations, and policies laid down by government guiding the freight packaging industry. Our customers and potential customers alike can be rest assured that they will get nothing but quality services at reasonable and affordable rates as our services are customer-centric. We will always prove this by going the extra mile to ensure the safety of goods under our care and our customers will always get value for their money. At MoveAndHaul Freight Packaging & Logistics, Co our goal is to provide excellent service to our customers and we pride ourselves on the integrity and competence of our company and our employees.

Our service offerings are listed below; packing goods, crating goods, wrapping goods, freight consolidation, trade document preparation, storing goods prior to and after freight, physical distribution consulting, logistics consulting, packing services for motor carrier and storage services

3.0. Our Mission and Vision Statement

To become one of the go-to choices of individuals and organizations when freight packaging and logistics services is needed as far as the majority of Nigeria is concerned.

Our Mission

To ensure that we build a successful freight packaging and logistics company that will operate in Nigeria; a company that will grow to be listed amongst the five stars rated freight packing and logistics services company in the country.

4.0. Our Business Structure

The structure of the business is modelled in such a manner that accommodate different forms of employment, from full-time to part-time workers. Few employees will be needed to get the business going at first, these full-time employers will be responsible for documentation, handlers of professional materials, IT and infrastructure personnel majorly the back-office staff, sales and marketing personnel will be taken up by freelancers.

It is up to us to hire hardworking, creative, qualified personnel that are ready to manage resources given to them to contribute to the building and maintenance of our business into a prosperous one that will benefit all stakeholders (the owners, workers and the customers).

For now, we will the maintenance of our trucks will be handled by the providers of that service, we don’t intend to maintain a very large overhead from the jump. But as soon as the business grows and stabilizes, we will assemble our own in – house maintenance team. Below are the business structure and the roles that will be available at the company;

Chief Operating Oﬃcer (Owner)
Admin and HR Manager
Freight Packing and Logistics Manager
Marketing and Sales Executive (Business Developer)
Accountant Material Handlers/Yard Spotters/Forklifts
Customer Services Executive/Front Desk Oﬃcer

5.0. SWOT Analysis

Going by our vision, our mission and the kind of business we want to setup, we don’t have any other option than to follow laid out process and these processes involves hiring business consultant to help us conduct SWOT analysis for our business. We employed a competent business consultant to help us conduct a SWOT analysis and to help us in formulating other business tactics to create strategies that will help us build our business and be fledged to compete in the freight packaging and logistics services industry. As a company, we are enthusiastic about maximizing our strength and opportunities and also to overcome our weaknesses and abrogate all threats;

Strength : Our strengths are strong management, the robust network serves some of the largest population centers in the country including size advantages, cost advantages, customer loyalty and strong reputation amongst domestic and industry players. Basically our business is centrally located in a densely populated industrial and residential estate in Apapa; our location is, in fact, one of our major strength. Another strength that counts for us is the power of our team; our workforce and management. We have a team that is considered experts in the freight packaging and logistics services industry, a team of hardworking and dedicated individuals.

Weakness : Our weakness could be lack of ﬁnance, cost structure, lack of scale compared to our peers who have already gained ground in the industry. As a new business which is owned by an individual (family), and we may not have the ﬁnancial muscle to sustain the kind of publicity we want to give our business. As a new business, we are also quite aware that it will take time for us to build trust with our clients.

Opportunities : The opportunities that are available to us as a freight packaging and logistics services company in the United States are online market, new services, new technology, and of course the opening of new markets.

Threat : Some of the threats that we are likely going to face are mature markets, bad economy (economy downturn) as it will affect consumers spending, stiff competition, and volatile operational costs. Other threats that are likely going to confront us are unfavourable government policies, seasonal ﬂuctuations and of course the advent of new competitors within the same location where ours is located.

READ -10 Good Business Plan Ideas with 100k in Nigeria

6.0. Our Target Market

Our target markets are basically everyone (organizations and individual as well who have cause to move documents, goods and materials from one location to another. In other words, our target market is the whole of Nigeria and below is a list of the people and organizations that are future prospects;

Merchants and Warehouse Operators
Retailers who would want to move their goods from one location to another
Manufacturers (Chemical manufacturers and Textiles manufactures)
Households who would want to move from one apartment to another
Corporate organization who would want to move from one oﬃce to another
Government agencies who have cause to move goods and materials from one location to other locations
Churches and religious organizations that would want to move instruments and equipment from one location to another
Non – Proﬁts and Charity organizations that have cause to move goods and materials from one location to another.

7.0. Our Competitive Advantage

The freight packaging and logistics company is characterized by a competition that is rather stiff because of the industry doesn’t require skill or prowess, anybody in the possession of funds and a certain level of business expertise can easily start the business.

Although, the freight packaging and logistics services industry requires some form of training and some level of expertise, but that does not in any way stop any determined entrepreneur from going ahead to start the business and still make astronomical figures as proﬁt out of this business. The business model we will be operating on, ease of payment, wide range of services and our excellent customer service culture will deﬁnitely count as a competitive advantage for MoveAndHaul Freight Packaging & Logistics, Co. So also we have a team that can go all the way to give our clients value for their money; a team that are trained and equipped to pay attention to details and deliver parcels and consignments safely, and on time both locally, nationally and international level. Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups freight packaging and logistics services companies) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

Now that you know How To Start Petroleum Haulage Service Business In Nigeria, are you ready to get a business plan to go alongside with?

How To Download The Haulage Business Plan Template PDF (with financial analysis)

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Feasibility Study for Haulage business

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A FEASIBILITY STUDY BUSINESS PLAN ON ROAD TRANSPORTATION BUSINESS IN NIGERIA DEVELOPED BY BRITECH PLUS+ ENTERPRISES

2019, Britech Plus+ Enterprises

Transportation is the movement of people from one place to another. This is indeed the simplest definition of transportation but transportation goes beyond the movement of people, it also includes the movement of goods, animals, crops, machines, equipment etc. from one place to another. Transportation is as old as man itself. We cannot talk of people without mentioning transportation. As individuals, there are limits to our capacity to move things from one place to another. Also there are limits to distance we can cover.

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Hike in haulage rate will further raise inflation, say freight forwarders.

Blessing Ibunge in Port Harcourt

Importers and exporters operating at the Eastern ports of the country, have lamented the impending rise in inflation, following an alleged 200 per cent hike in haulage rate by the Nigeria Shippers Council (NSC). The operators unanimously threatened operational shutdown and declared a seven- day ultimatum if the council does not return to status quo by reversing the rate.

Speaking to journalists on behalf of the group in Port Harcourt, Zonal Coordinator, Association of Nigeria Licenced Custom Agents (ANLCA), Mr Joshua Ahuama, said the meeting became necessary to enable the body collectively reject the new rate, as it contravened the provisions of the NSC Act. According to him, stakeholders consultation is an integral provision of the agency’s Act an pd should be respected.

He said: “Recently, the NSC approved a 200 per cent increment in haulage rate for transport owners and drivers operating under the maritime union of Nigeria. “To this end, importers and freight forwarders association in the eastern zone have unanimously disputed the new rate because it is outrageous, arbitrary and unacceptable to all stakeholders in the zone. “We have however, resolved to adopt all peaceful efforts. We started this move on March 14, by calling on the NSC to ensure proper stakeholders engagement and renegotiation. These measures are also expected to help all parties to reach a benchmark that would be in the interest of all stakeholders in the maritime value chain.

“We also urge the NSC to return to status quo by suspending the implementation of the disputed rate, pending proper renegotiation covering the interest of all stakeholders. “We are not on a selfish course, our demands are in the interest of Nigerians because any slight increase on haulage rate will reflect on prices of goods in the open market. A businessman incorporates total logistic costs into prices of goods.” The group, however, said it might be constrained to take drastic measures that would include suspension of all declaration of goods and payment of customs duties, which could negativity affect national revenue and economic output.

Some members of the import and export association who were present at the meeting included; Nigeria Shippers Association, Aba International Traders Association, Ultimate Importers Association, POP Importers Association, Nnewi Importers Association and Onitsha Importers Association.

Others were; African Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), National Association of Government Approved Freight Forwarders (NAGAFF), RF Transportation Incorporated, ANLCA, amongst others.

Founded on January 22, 1995, THISDAY is published by THISDAY NEWSPAPERS LTD., 35 Creek Road Apapa, Lagos, Nigeria with offices in 36 states of Nigeria , the Federal Capital Territory and around the world. It is Nigeria’s most authoritative news media available on all platforms for the political, business, professional and diplomatic elite and broader middle classes while serving as the meeting point of new ideas, culture and technology for the aspirationals and millennials. The newspaper is a public trust dedicated to the pursuit of truth and reason covering a range of issues from breaking news to politics, business, the markets, the arts, sports and community to the crossroads of people and society.

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Logistics And Haulage Business Plan In Nigeria Pdf
This explains why the road haulage business is one of the most lucrative businesses to begin in Nigeria today. For the remaining part of this business plan, including the detailed financial analysis, call any of our business plan consultants on 08122230861 or send me an email at chibuezemicah e@gmail. com.
Haulage / Logistics Business Plan in Nigeria
Get your Haulage / Logistics business plan in Nigeria. To place an order, pay N10,000 to . Bank Name: Guaranty Trust Bank (GTB) Account Name: Chibuzor Tochi Onyemenam. Account Number: 0044056891. After payment, send your full name, email address and topic (e.g. feasibility study on haulage business) to 07033378184. Your business plan will be ...
Haulage Business Plan In Nigeria (2024 Sample) • NG Business
Once payment is made for the Haulage & Trucking/Logistics Business Plan in Nigeria / FEASIBILITY STUDY PDF, send the following info (i) a valid email address and (ii) your payment details to any of these numbers - 07039768549. For those asking questions on how to start haulage business in Nigeria, here is your answer.
How To Start A Haulage Business In Nigeria
Create A Niche. Hauling business is a wide business area involving crude oil, building materials, food products, medical kits, gravel and stones, e.t.c. To operate effectively, there is a need to carve a niche for yourself. The niche you choose will determine the startup cost, vehicle specification, and type of clients.
How to Start a Profitable Haulage Business in Nigeria: A Step-by-Step
The haulage industry in Nigeria is a lucrative business opportunity for entrepreneurs, considering the country's importance as a regional trading hub. With the right planning and execution, building a profitable haulage company in Nigeria is an achievable goal.
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To order the haulage business plan in Nigeria, pay N10, 000 to: BANK NAME: FIRST BANK PLC. ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM. ACCOUNT NUMBER: 3066880122. After payment, text your full name, email address and title (haulage business plan pdf) to 07033378184. Your business plan will be sent to your email within 15 minutes.
Haulage Business Plan In Nigeria (Complete Guide)
You are bond to make fortune in this section of haulage business because Nigeria is an oil producing country, so there will always be job for you. There are various capacities and sizes of tankers with capacities ranging between 5,000 - 20,000 liters are used to transport basically diesel and kerosene.
Haulage & Logistics Business Plan In Nigeria (Profits & Expenditure)
Our Haulage & Logistics Business Plan in Nigeria is regularly updated, it can be used to access bank loans, proposal writing and grant applications. The business plan was complied after a thorough feasibility study on Haulage and Logistics Business in Nigeria was done. Haulage business otherwise known as trucking business is a very lucrative ...
Haulage, Logistics Company Business Plan Lagos, Nigeria| Transport Ikeja
Haulage/logistics refers to the transportation of goods/products from one location to another within a nation or across many nations. The haulage and logistic service is rendered using vehicles that are big and strong enough to lift large amount of items at once. These vehicles include: trucks, trains, tankers, trailers, cranes, and so on.
Haulage Business in Nigeria: How to Get Started
5. Execute according to the business plan. Bring the haulage business to life by working through the details set down in the business plan, to implement the following: Register your business. Fulfill regulatory requirements. Acquire finance. Acquire trucks and other requirements. Staff the business.
Haulage and Logistics Business Plan in Nigeria
The Haulage and Logistics Business Plan in Nigeria is important because. It will assist you in making sound decision in the administration of the commercial enterprise which will make a contribution to the success of the business. It will additionally gives distinctive statistics on all components of the business, outlining the business desires ...
Haulage & Logistics
In Nigeria, haulage business and even logistics is a billion dollar business with an insatiable market. This is because transporting goods across long distances has become a necessity and an important industry. No matter, the industry you find yourself, bulk goods must be transported to and fro (both raw and finished goods), which makes the ...
How to Start Haulage Business in Nigeria
Here are steps to start a haulage business in Nigeria. 1. Write a Business Plan. The first step on how to start your own haulage business in Nigeria is to write a well-detailed haulage business plan. In a haulage business, you need a business plan to make sure you do not make unnecessary mistakes. The business plan will guide you on everything ...
How to start a profitable Haulage Business in Nigeria
The first is a business plan and the second is the capital to purchase a vehicle. The cost of starting up an average transport company in Nigeria ranges from $110,000- $330,000. The resources required to start a transport company in Nigeria are complex and vary from one country to the next.
Haulage and Logistics Business Plan in Nigeria
Objective for Haulage and Logistics Business Plan in Nigeria. Establish bases in Kano, Kaduna, Makurdi, Port-Harcourt, Ibadan, Onitsha and Aba. Purchase 8 18-wheeler trucks with dry van trailers. Hire 10 full-time truck drivers. Achieve strong annual revenue based on 1.2 million miles of hauling in the third year.
Starting Haulage & Logistics Business Nigeria| Logistics Business
The haulage and logistics business falls under the transportation industry and it is a billion-dollar industry with an unsatisfied and insatiable market. The logistics sector is unarguably one of the fastest-growing industries in Nigeria, even though it is still emerging. Its estimation as of 2018 was 250 billion naira.
How To Start Haulage Business In Nigeria
Starting a haulage business in Nigeria is a big opportunity for aspiring entrepreneurs to flourish. With the nation's growing economy, the demand for transportation and logistics services is also increasing. In this article, we will take you through the steps of how to start a successful haulage business in Nigeria. So, buckle up and let's get started!
(DOC) A HAULAGE AND LOGISTICS BUSINESS PLAN
Olubunmi Jinadu Entender Ventures 07039633204 [email protected] 5, Adepitan Street, Ogba, Ikeja, Lagos. EXECUTIVE SUMMARY In Nigeria and South Africa alone, more than 7,000 businesses are registered as truckers and haulage service providers.
Starting a Haulage Business in Nigeria
Trucking business can also be called haulage business. It involves the moving of goods from one place to another with large vehicles like trucks, tippers, trailers e.t.c. Starting a haulage business is a very good one because it is one of the most needed businesses in Nigeria. Transportation is a very essential factor in any economy, Nigeria ...
How To Start Lucrative Haulage Business In Nigeria
Like every serious business, there risks in involved in operating haulage services in Nigeria and understanding these risks will help you plan your investment properly. Below are some of them. 1. Loosing your trucks due to bad road. With the state of roads in Nigeria, most people will think twice before delving into haulage business.
Haulage Business Plan In Nigeria Feasibility Study
Account Number: 3094192129. Haulage Business Plan In Nigeria Latest Edition feasibility studies proposal. After payment text your name, your e-mail address and bank teller number or your transfer reference number to 08107015636 and A Copy of our Haulage Business Plan In Nigeria FEASIBILITY STUDY PDF will be send to your email.
How To Start Petroleum Haulage Service Business In Nigeria
In Nigeria, goods delivery service is one of the most in-demand services, and getting a sample or complete business plan for goods delivery business plan is one of the best things to do. You can use this haulage and logistics business plan for NIRSAL Loan application, BOI, BOA, other commercial banks or other funding schemes projects.
A Feasibility Study Business Plan on Road Transportation Business in
GIGM Transport - N10, 050 God is Good Motors (GIGM) has gradually found its way to the top of the road transport business in Nigeria with its new and luxury Mercedes Benz shuttles. GIGM even offers pick up services on some select routes including the Lagos-Abuja route.
Hike in Haulage Rate Will Further Raise Inflation, Say Freight
Founded on January 22, 1995, THISDAY is published by THISDAY NEWSPAPERS LTD., 35 Creek Road Apapa, Lagos, Nigeria with offices in 36 states of Nigeria , the Federal Capital Territory and around ...
Exclusive: Nigeria's NNPC faces $3 billion backlog on petrol payments
Fuel and power subsidies could shave 3% from GDP in 2024- IMF. LONDON/BRUSSELS, April 8 (Reuters) - Nigeria's state-oil company NNPC owes around $3 billion to fuel traders for imported petrol ...

Logistics And Haulage Business Plan In Nigeria Pdf

Sample Logistics And Haulage Business Plan In Nigeria PDF –

Table Of Content

Executive Summary

BUSINESS DESCRIPTION

MARKET OVERVIEW

Step On How To Start A Logistics And Haulage Business In Nigeria.

Haulage Business

Steps To Start A Haulage And Logistics Business In Nigeria

How To Maintain Your Logistics And Haulage Business In Nigeria

How Big Is The Haulage Market?

Ready To Start Your Haulage And Logistics Business In Nigeria Or Africa?

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Valuation Of Long Term Investments

How To Start A Haulage Business In Nigeria

Haulage Business

Create A Niche

Step By Steps Plan On Haulage Business

Register Your Business

Fulfill Regulatory Requirements

Business Operation

Independent Haulage Company

Contractor/Sub-contractor

Leasing Trucks To An Haulage Company

Staff The Business

Source For Customers

Deliver Service

How To Maintain Haulage Business Company

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How to Start a Profitable Haulage Business in Nigeria: A Step-by-Step Guide

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Haulage & Logistics Business Plan

Haulage / Logistics Feasibility Study

Purchase a truck

Register your business

Market your Haulage Business

Create a Reputation

Determine your area of specialization

Rules and regulations

Install security and tracking features in your vehicle

Employ experience drivers

Motivate your drivers

Customer service

Maintenance of the vehicles

Independent operation

Challenges of Haulage Business

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Haulage Business in Nigeria: How to Get Started

1. Understand the opportunities for haulage in Nigeria

2. Discern the possible scales of the haulage business

3. Choose a niche and size