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Fuel Haulage Business - Business - Nairaland

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In Uk But Wants To Go Into Haulage Business In Nigeria. Help And Advise Please? / Is Haulage Business Viable In Nigeria? / I Want To Start A Container Haulage Business. I Need Your Advice! (1) (2) (3) (4)

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Fuel Haulage Business by liliput(f): 10:05pm On Sep 14, 2008
I have a proposal made to me by a transport company that is into fuel haulage for some major oil companies in Nigeria. it involves fabricating a tanker that would cost me 6.5million and leasing it off me for a minimum of 2 years while i get 800k monthly returns. I will have to insure the tanker but every other thing would be handled by the transport company. The offer seem really good being that i wont be involved in the nitty-gritty and the stress of running the tanker also, i would have my capital back in less than a year but really i dont have any idea about how the haulage business works in Nigeria is it possible to make that much monthly? please i need all the ideas i can get from all of you guys who have a good grip of how the business runs. please am open to all your sugesstions and comments as per the risks involved and if it is worth venturing into. All comments would be greatly appreaciated, thank you very much.
Re: Fuel Haulage Business by poske(m): 3:01am On Sep 15, 2008
Where are you producing your tanker, and yes u can make that kind of returns, its just that the risk is very high. So since you have mitigated it then u should be okay//, cheesy
Re: Fuel Haulage Business by eddmo(m): 11:55pm On Sep 15, 2008
i have made some enquires from friends who are into the business their responds is encouraging provided you let the transport firm know that every negotiation must involve your lawyer and every deals done with legal agreement i.e documented,ride on dint forget your brother oh.[color=#000099][/color]
Re: Fuel Haulage Business by liliput(f): 2:57pm On Sep 16, 2008
Thanks very much for your advice i really appreciate it. the tanker would be made by the transport company on my behalf. According to them there is a company in kaduna that does the fabrication of the tank and imports the head from some country i dont know where now but it would cost me 6.5million for the finished tanker. Then they lease it off me.

i would really appreciate any more advice cause am really considering it. My lawyer is aware of it already and no contract would be signed without my lawyer but you know i just want to be really sure there are no other hidden risks involved that i dont know of right now. thanks very much.
Re: Fuel Haulage Business by poske(m): 1:54pm On Sep 17, 2008
The other major risk is how long it will take to get, the truck fabricated and to what standard and quality. See i can understand them, they want to use your money to make money. And you dont mind.
Well then go ahead.
My suggestion is why dont they do the fabrication first, then you pay for that then they import the truck then you pay, at least you are involved in the whole process.

There are too many arm chair investors. Why dont you put ur money in bonds, e.t.c
Re: Fuel Haulage Business by joychikal(f): 2:27pm On Sep 26, 2008
Hi, Fellow nairalander, please can you help me by giving me contact of the firm i.e. the fuel halilage business, I'm interested in the business. Thank you and God bless

Joy
my email address is: joychikal25@yahoo.com
Re: Fuel Haulage Business by kizzymack(m): 8:09pm On Sep 26, 2008
@ liliput

if the transport co. is genuine, then go ahead with it, but, i'm surprised that you don't know the details of what you are being offered. I am in the same business and will oblige you with an elaboration.

Costs:
Tank constructuction: 1.2m
Back Axle: 0.8m
Tractor (capable of doing lagos-kaduna weekly): 4.4m

this is how your N6m will be applied.


Now, on the issue of you getting returns of N800k monthly. that is ambitious!!

it is not impossible, but its ambitious. You would make N800k in a month if there are no downtimes on your truck, and this is impossible because trucks always have one issue or the other that must be addressed before they resume work. Now, when you're signing this contract, make sure your lawyer reviews it thouroughly for this caveat, otherwise the transporter will consistently declare downtimes and you will take home circa N300k a month, if they are really nice.

The reason why the transporter can afford to pay you N800k if everything goes well is because they make money on the product you are carrying and they pay you for transportation.

Now, let's assume your truck does Lagos-Kaduna four times monthly (which is above average, it should be more like 3x). transport to kaduna is N300k, less diesel costs, trip allowance for driver, state union dues and you're left with 120k-150k. let's take 150k and multiply it by 4 trips monthly. what is accruable to your truck is 600k. this is the base case scenario. N800k is a stretch, but if you can get it, more grease to your elbows.

you can contact me if you require more info.

all the best.

1 Like

Re: Fuel Haulage Business by securit: 12:47pm On Oct 01, 2008
Kizzymack,
Thanks for sharing this details with us.I am interested in the business, can you please, give me a number I can reach you on or you can mail me on eeyanyi123@yahoo.com. Thanks


kizzymack:

@ liliput

if the transport co. is genuine, then go ahead with it, but, i'm surprised that you don't know the details of what you are being offered. I am in the same business and will oblige you with an elaboration.

Costs:
Tank constructuction: 1.2m
Back Axle: 0.8m
Tractor (capable of doing lagos-kaduna weekly): 4.4m

this is how your N6m will be applied.


Now, on the issue of you getting returns of N800k monthly. that is ambitious!!

it is not impossible, but its ambitious. You would make N800k in a month if there are no downtimes on your truck, and this is impossible because trucks always have one issue or the other that must be addressed before they resume work. Now, when you're signing this contract, make sure your lawyer reviews it thouroughly for this caveat, otherwise the transporter will consistently declare downtimes and you will take home circa N300k a month, if they are really nice.

The reason why the transporter can afford to pay you N800k if everything goes well is because they make money on the product you are carrying and they pay you for transportation.

Now, let's assume your truck does Lagos-Kaduna four times monthly (which is above average, it should be more like 3x). transport to kaduna is N300k, less diesel costs, trip allowance for driver, state union dues and you're left with 120k-150k. let's take 150k and multiply it by 4 trips monthly. what is accruable to your truck is 600k. this is the base case scenario. N800k is a stretch, but if you can get it, more grease to your elbows.

you can contact me if you require more info.

all the best.

Re: Fuel Haulage Business by suze(f): 1:50pm On Oct 16, 2008
@ kizzymack. Pls how much will it cost me to construct a 5,000litres capacity tanker? I'm interested pls could u contact me via brentcol.nig@gmail.com
Re: Fuel Haulage Business by ajayi1(m): 9:54pm On Oct 16, 2008
I know about Oil and Gas biz for years. SO guys that are interested in it you have to be careful because in this business we have lot of FRAUD ppl in it. First thing you have to be sure of are: The Company name registered and viewd online, check if the document are real (Original), Know who you deal with (Even your own family can scam you o). You can try to show ppl the doc for them to confirm for you sha.

See ya
Re: Fuel Haulage Business by loracle: 1:29am On Dec 17, 2008
Would like to contact you (kizzymack) re: construction of the tanker? My email address is tahiti4u@gmail.com.
Thanks.
Re: Fuel Haulage Business by Jcargo(m): 9:41pm On Jan 06, 2009
Kizzymack,

Thanks so much on your brilliant advise on this oil transportation issue . I base in The Netherlands and in Nigeria i do sell trucks www.juniorcargo.com for such business and am willing to start such business soon . With my research i got to know that the tanker can also be rented if you can not afford to build one yourself ( how far is that true? Secondly that i can operate my business outside transporter , i mean myself without giving my trucks to the transporter ( is that true ? , I have in stock now 2 ivco trucks to start on this business . Please kindly advise me on this issue .

Junior Cargo
www.juniorcargo.com
Re: Fuel Haulage Business by youngmill(m): 8:26pm On Jan 07, 2009
kizzymack:

@ liliput

if the transport co. is genuine, then go ahead with it, but, i'm surprised that you don't know the details of what you are being offered. I am in the same business and will oblige you with an elaboration.

Costs:
Tank constructuction: 1.2m
Back Axle: 0.8m
Tractor (capable of doing lagos-kaduna weekly): 4.4m

this is how your N6m will be applied.


Now, on the issue of you getting returns of N800k monthly. that is ambitious!!

it is not impossible, but its ambitious. You would make N800k in a month if there are no downtimes on your truck, and this is impossible because trucks always have one issue or the other that must be addressed before they resume work. Now, when you're signing this contract, make sure your lawyer reviews it thouroughly for this caveat, otherwise the transporter will consistently declare downtimes and you will take home circa N300k a month, if they are really nice.

The reason why the transporter can afford to pay you N800k if everything goes well is because they make money on the product you are carrying and they pay you for transportation.

Now, let's assume your truck does Lagos-Kaduna four times monthly (which is above average, it should be more like 3x). transport to kaduna is N300k, less diesel costs, trip allowance for driver, state union dues and you're left with 120k-150k. let's take 150k and multiply it by 4 trips monthly. what is accruable to your truck is 600k. this is the base case scenario. N800k is a stretch, but if you can get it, more grease to your elbows.

you can contact me if you require more info.

all the best.








I was told something similar when i went into the business as well, 600 thousand to be precise. the more realistic figure is 300 thousand if you monitor it properly. fuel haulage may be different.
Re: Fuel Haulage Business by dejia(m): 8:45pm On Jan 14, 2009
I also heard about the business last week, i think its visible, am also planning to go into it, but i think i will prefer a factory fitted tanker, i heard it cost about 7Million from germany.
Re: Fuel Haulage Business by godash: 8:39pm On Feb 24, 2009
liliput:

Thanks very much for your advice i really appreciate it. the tanker would be made by the transport company on my behalf. According to them  there is a company in kaduna that does the fabrication of the tank and imports the head from some country i dont know where now but it would cost me 6.5million for the finished tanker.  Then they lease it off me.

i would really appreciate any more advice cause am really considering it. My lawyer is aware of it already and no contract would be signed without my lawyer but you know i just want to be really sure there are no other hidden risks involved that i dont know of right now. thanks very much.

Hello Liliput,

I beg, i go like to discuss this further with you.
Re: Fuel Haulage Business by mailchinny(f): 11:46am On Feb 25, 2009
thats a ud biz foru.but i have something to add to u.after getting the truck ready,make sure u do comprehensive motor insurnce for it incase of accident and the goodstoo.i am ifunanya i work with law union and rock insurance plc a subsidiary of skye bank plc.i will be glad if u take up the insurance with my company thru me and i promise u ,u wont regret it.this my no 08036627156.
Re: Fuel Haulage Business by Fhemmmy: 2:52pm On Feb 25, 2009
Kizzymack, ajayi1, Poske, Eddmo, please could you guys send me information on this kinda buz, been looking for some business to deal with in Nigeria, i can import the truck head by myself from the Americas, so all i will have to worry about is the building of the tank to specification.

Mailchinny, please, send me information regarding a comprehensive Insurance for this kinda buz as well.

My mail add is Fhemmmy@Gmail.com.

Thanks and merci
Re: Fuel Haulage Business by aob: 5:14pm On Feb 26, 2009
Nice business i can assure you. But do not be deceived, it is very hard to hit 800k monthly with a truck. Two ways you can go about the business. Do local deliveries or bridge. You can make such under bridging, but the system is actually over-trucked. I work with one of the government agencies in the downstream sector. I have the updated data on this business at my finger tips cos am part of the business. I wonder why you want to go into a business you know nothing about. Please try and read "The Millionaire Capsules by Ayo Arowolo" before you commit you fund into the business
Re: Fuel Haulage Business by kizzymack(m): 3:09pm On Mar 01, 2009
aob:

but the system is actually over-trucked.

that sums it up right there!

the bridgers that make it are those that already have a well-established marketing system in place at thier point of discharge.

I can be reached at anyixl@yahoo.com for those that want to get in contact with me.

aob; what kind of info dyu have a ur fingertips. plz elaborate.
Re: Fuel Haulage Business by bimsbims(f): 12:24am On Mar 08, 2009
Hi I am very happy to see this topic.My father tried this haulage business some years ago but lost his tanker and driver in an accident and he stopped.I would like to know how to go about getting the tanker then leasing to an oil company maybe Mobil or nnpc or Bp.How does one go about that and can I get a cheaper alternative for the tanker ?I have about 2m and I want to come to Nigeria to start a business that only require me coming home about every 2 months or 3 months.Thanks
Re: Fuel Haulage Business by lorie: 2:07am On Mar 09, 2009
hello, kizzymack. reading your post which was very helpful i guess you can help me in this matter. I plan to rent a truck to haul petroleum products. how can i go about this. im new in the business.

thanks, loirie
Re: Fuel Haulage Business by gafasng: 9:22pm On Mar 12, 2009
pls. i need a little help on how to write a business proposal on the truck business (haulage). not particularly fuel haulage. i mean that of goods.
pls any help that can be rendered will be highly appreciated.
Re: Fuel Haulage Business by cleric(m): 7:18pm On May 02, 2009
@gafasng,
I have one but it will cost u. Contact me if interested, stipulatebigdaddykool@yahoo.co.uk
Re: Fuel Haulage Business by DisGuy: 12:07am On May 03, 2009
Anyone with more detailed information willing to help without asking for private emails?
Re: Fuel Haulage Business by poske(m): 12:02am On May 05, 2009
For genuine tanker operators petroleum supply vendors, filling station managers and agents. Major marketers and Independent Marketers, we bring you http://assetmove.com please visit and register.

Details,
you can list your petroleum product in details and clients and customers will bid/spot buy, this will help promote your business to various part of the country increase your clients and also help reduce the amount of phonecalls e.t.c by getting the best customer that will be most suited for that delivery.
Please go ahead and register after that list your tanker supply(pms,dpk,Ago) or invite your marketer to list their products in your locality section that you have the capability to transact. in 24/7 product purchase and record keeping.
"Assetmove nothing is too big too handle" smiley
Re: Fuel Haulage Business by papayangh: 5:38am On Sep 03, 2009
Hello everyone, nice topic. I have been thinking on going on the distribution aspect of the business. I plan buying a 18000 liter truck for local distribution instead of the long haulage trucks. Do you think its a viable investment. I need advice. What are the risks?
Re: Fuel Haulage Business by FunmyKemmy(f): 10:58am On Sep 03, 2009
Hello all,

Can someone tell me the amount to pay to get a 10,000 litres tank for kerosene business? I will also welcome excellent ideas and advice about the business and how to go about it.

Thank you
Re: Fuel Haulage Business by sonety2k(m): 11:17am On Sep 03, 2009
;d
Re: Fuel Haulage Business by infogenius(m): 8:23pm On Sep 03, 2009
Very lovely and informative thread
Re: Fuel Haulage Business by bollie: 12:20pm On Oct 10, 2009
@kizzymack and every1 , How can i go about this fuel haulage biz with about 2m-2.5m naira to get started??which truck is ideal to start with?montly rate of income and the risks involved??cheers

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