How to Start A Dump Truck Business in Nigeria
Dump truck business entails movement of goods (products) from one specific place to another. The transportation fare from to and/or from the destination is the profit in the dump truck business.
So, if you are curious about this business, understand that this is an evergreen business opportunity which need always comes up as far as transportation of goods is involved, whenever the need arises. In as much as the customer is satisfied, there is always business for you.
Goods that are regularly carried include:
- Agricultural products
- Building materials such as clay, granite, cement, sand, wood, iron rods etc.
- Cargoes/containers from the ports
- Commodities like flour, salt, sugar etc.
- Heavy duty equipments like transformers, generators, pole etc.
- Petroleum products such as Dual Purpose Kerosene (DPK), Premium Motor Spirit (PMS), Low Pour Fuel Oil (LPFO), Automotive Gas Oil (AGO) and other Petrochemicals.
- Solid minerals and any other finished products
Dump truck business and its corresponding distance charges can be within the state of domicile, for example Akwa Ibom state, and in this case, it is usually called (Local). It may equally be operated outside the state of domicile, in which case it is called (Interstate). Alternatively, dump truck business may be operated inside a defined geographical setting or region such as the Southwest, Northeast, Eastern or Southeast Nigeria respectively.
The Economic Importance Of Dump truck Business
road dump truck business in Nigeria has obviously taken the lead in the transportation of goods and services within the country. Notwithstanding, anyway, Dump truck business incorporates both movement of goods and/or services by rail or by road, but due to the downfall of the rail system in the country, the option for read has become more pronounced.
Nonetheless, the high population density in the country has opened a whole big business potential in the dump truck business in Nigeria.
We just can’t do without transportation as a country, due to its overriding importance on the economy. Transportation contributes a greater part to the growth and wellbeing of the entire population numbering over 140 million.
Given an efficient transport system, economic and social liberties together with other benefits which result in the beneficial multipliers effects like better approachability to markets and supplementary investments are readily achieved.
We cannot also overemphasize the fact that transport carries a larger proportion of environmental impact and social load. So, Are you interested in starting a trucking business or haulage logistics? if yes, then, here is a quick of haulage business plan sample or Sample Trucking Company Business Plan for you.
With the haulage business plan discussed here, you can start
- petroleum haulage business in Nigeria
- Building materials haulage business in Nigeria
- Agricultural haulage business in Nigeria
- General goods haulage transportation business in Nigeria
Below is the industry analysis of haulage business and how to get started.
There are many kinds of dump trucks which carry container, that is container dump trucks can easily be short framed. We also have Trucks for 20 feet containers which are referred to as framed truck for 40 feet containers. As such, the cost changes between N3m – N12m with respect to the size and the age of the dump trucks.
The users of dump truck services include individuals, companies, agencies etc.
The following are needed for container dump truck:
- Tractor: this is the head of the truck itself.
- The body of the truck: this is the very flatbed where the container boxes will be placed on fourteen tires.
The Net Income
The Return On Investment (ROI) in the dump truck business is very high due to its ever-present and ever increasing patronage. The dump truck business is 6 days a week, 30 days in a month and 364 days in a year kind of business.
The rate of interest is a function of what is being billed per time the truck is used. Given the hindrance like mechanical faults, road traffic congestion, etc., a few hiccups is inevitable. However, with good management practices, the dump truck service is without a doubt, a very lucrative investment enterprise.
The Income Analysis
The port management services anticipate a trucker to go measurably two trips of dispatching containers to assigned bonded terminals outside the ports.
- Per trip, the trucker will be paid between N15,000 – N16,000
- Running cost per trip would be around N6,500
- Projected profit per trip N9,500
- N9,500 per trip x 2 trips per day N19,000 per day N19,000 x 6 days N114,000 Per week N114,000 x 4 weeks N456,000 per month
This is the monthly income within Lagos.
- For trucks plying within the southwestern zone Add 50% of the monthly income
- e. N456,000 = N228,000
- Monthly return = N456,000 + N228,000 = N684,000
For that reason, monthly income for trucks in the southwest axis will be N684,000
- annual income = N684,000 x 12 = N8,208,000 Less 30% Depreciation/Maintenance = N2,462,400
- Annual Net Income N5,745,600
The Income Analysis For Tanker
- For trips in Lagos, an average size tanker charges between N30,000 – N45,000
- Let’s believe N35,000 per trip
- For an average trip an expense of N6,500
- Net profit per trip N28,500
- An average of 20 trips per month N28,800 x 20 N570,000
- Annual income N570,000 x 12 = N6,840,000 Less 30 % Depreciation/ Maintenance = N2,052,000
- Net Annual Income = N4,788,000
Popular Risks In Dump truck Business
Just as it is in any other kind of business, dump truck business also has it’s own ups and downs too. Some of the popular risks which dump truck business faces includes:
- The Drivers: This is the main problem with this great business
- The state of your truck
- Your manager
- Winning Tricks
- The Mechanic in charge of the repairs of the dump truck
The solution to these problems are:
Simply hire a competent driver, or alternatively, enlist your truck under a fleet manager who will manage the running of the truck on behalf of you at a fixed fee.
Tracker: If you integrate a tracker on all your trucks, immediately your driver starts your vehicle for the day you will be able to monitor his movements via text messages.
Mechanic: You can also engage the services of a qualified mechanic who will carefully examine your trucks before you buy them. Also seek advice from veterans in this Haulage Business In Nigeria, that is, people who are already doing or have been in this business before you.
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