Haulage Of Manufactured Goods In Nigeria The Feasibility Report.

Haulage involves the transportation of goods by road and railway. It is very key to the socio-economic development of any nation and if the vision 2020 of the present government is to be achieved, the government would have to develop the transportation system which would automatically lead to the development of the economy, since an efficient transport system is an essential component in the production and distribution of goods.

Since the collapse of the rail system in Nigeria, road haulage business has assumed a wider dimension and has become the most utilized way of intercity movement of goods and services. Goods usually convened include petroleum products, building materials, containers, solid minerals, agricultural products and finished products.

Generally, haulage business can be viewed from four categories namely,

1. Tanker-Trailer
2. Tipper
3. Crane
4. Forklift

Tanker- Trailer: They vary in size, shape and capacity and these also affects the use to which they are put to. Tankers are usually used in the transportation of petroleum products. The size also determines the use to which the truck might be put to as kerosene and diesel delivery trucks especially home delivery are smaller than those used in the delivering to filling stations. Trailers are used to convene agricultural products and solid minerals from the north to the south. If the entrepreneur intends to use the truck in the transportation of petroleum product, the truck would have to be registered with the National Union of Petroleum and Natural Gas Workers (NUPENG)

Tippers: Tippers are used in the transportation of granites and sands from the quarry site and lakes respectively for use in the construction industry mostly in the southern part of the country. To be involved in the business, you have to be registered with the quarry site you intend to lift the products from or through any of their agents.

Crane: Although, transportation and haulage business is as old as mankind, the crane trucks aspect of haulage business seems not to be pronounced among the other annexes of general haulage. The reasons for this are not farfetched. The unique nature of the kind of services that are executed by the cranes is mostly responsible for the unpopular nature of this mode of transportation of goods.

Cranes are used the lifting and transportation of goods over a long distance. They are used in the transportation of PHCN transformers and poles, telecommunications equipment, heavy duty generators and containers. They can classified into 20 tons cranes, self loader and the low beds.

Forklift: Forklift just like cranes are used in the lifting and transportation of heavy goods but the distance covered in the major difference. Forklifts are used in the loading and offloading of goods in industries and the provision of this service in the nation’s haulage system is usually over looked.

The market for haulage services is national .With a population of over one hundred and sixty five million (165,000,000) people and an estimated national population growth rate of 5.7% per annum , average economic growth rate of 3.5% per annum in the past five (5) years, Nigeria is a large ,expanding and sustainable market for haulage services.

This report is to examine the financial viability or otherwise of providing haulage and warehouse services for the manufacturing, maritime, oil and gas, telecommunications and construction industry in Nigeria.

The proposed project would start with twenty five (25) trucks and with four (4) warehouses to be located in Lagos, Abuja, Kano, and Port Harcourt.

Table of Contents

EXECUTIVE SUMMARY Business Overview 1.1 Description of the Business 1.2 Vision and Mission Statement 1.3 Business Objective 1.4 Value Proposition 1.5 Critical Success Factor of the Business 1.6 Current Status of Business 1.7 Description of the Business Industry 1.8 Contribution to Local and National Economy Marketing Plan 2.1 Description of product 2.2 Product Packaging and delivery 2.3 The Opportunity 2.4 Pricing Strategy 2.5 Target Market 2.6 Distribution and Delivery Strategy 2.7 Promotional Strategy 2.8 Competition Production Plan 3.1 Description of the Location 3.2 Raw Materials 3.3 Production Equipment 3.4 Production Process 3.5 Production Cost 3.6 Stock Control Process 3.7 Pre-Operating activities and expenses 3.7.1 Operating Activities and Expenses 3.8 Milestones Organizational and Management Plan 4.1 Ownership of the business 4.2 Profile of the promoters 4.3 Key Management Staff 4.3.2 Management Support Units 4.4 Details of salary schedule Financial Plan 5.1 Financial Assumption 5.2 Start up Capital Estimation 5.3 Source of Capital 5.4 Security of Loan 5.5 Loan Repayment Plan 5.6 Profit and Loss Analysis 5.7 Cashflow Analysis 5.8 Viability Analysis Business Risk and mitigation factor 6.1 Business Risks 6.2 SWOT Analysis

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