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.

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//,

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]

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.

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

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

@ 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.

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.

@ 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

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

Would like to contact you (kizzymack) re: construction of the tanker? My email address is tahiti4u@gmail.com.
Thanks.

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

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.

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.

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.

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.

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

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

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.

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

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

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.

@gafasng,
I have one but it will cost u. Contact me if interested, stipulatebigdaddykool@yahoo.co.uk

Anyone with more detailed information willing to help without asking for private emails?

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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?

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

;d

Very lovely and informative thread

@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