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.
|
Destination
|
Charges
|
Cost/Fueling
|
Take Home Profit
|
|
Lagos – Aba
|
N250,000
|
N100,000
|
N150,000
|
|
Lagos – P/Harcourt
|
N270,000
|
N150,000
|
N120,000 |
|
Lagos – Kano
|
N300,000
|
N160,000
|
N140,000
|
|
Abuja – P/Harcourt
|
N250,000
|
N150,000
|
N100,000
|
|
Lagos – Abuja
|
N260,000
|
N140,000
|
N120,000
|
|
Lagos – Ibadan
|
N70,000
|
N30,000
|
N40,000
|
|
Lagos – Onitsha
|
N180,000
|
N80,000
|
N100,000
|
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.
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
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.
Thanks
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)
Regards
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 ?