Steps to Launch a Haulage Company in Nigeria 2023
The haulage industry is one of the companies in Nigeria that is connected to transportation. I will go into detail about all you need to know about the haulage company in Nigeria in today’s essay.
In this article, I’ll define haulage business and go through its profitability, capital requirements, and step-by-step instructions for starting one in Nigeria. Contrary to popular belief, the haulage industry is distinct from the logistics industry.
The logistics industry includes the haulage industry. It is under the logistics sector. There are, however, various haulage businesses in Nigeria. The most typical kind of haulage business is employing tippers or trucks to move large pieces of machinery or construction supplies from one location to another.
What is a hauling company?
Transporting huge quantities of goods or products between suppliers, factories, warehouses, or depots through road or rail is known as haulage business. Moving anything that potential buyers could need in quantity is known as haulage. Consumables and non-consumables may be included in this. Simply put, a company is not engaged in haulage if it does not move goods utilizing trucks or tippers.
To start a haulage business in Nigeria, follow these steps:
1. Plan your business.
Writing a thorough haulage business plan is the first step in starting your own transport company in Nigeria. A business strategy is required for the haulage industry to prevent costly errors.
The business plan will instruct you on all you require regarding the haulage industry in Nigeria, right down to how to quickly boost profits. Even if you are not familiar with them, writing a business plan is not difficult. All you need to write is a step-by-step format instruction.
Yet, you can get in touch with us through the blog for discounted assistance if you want to escape all the tension and you require a professional touch.
2. Get the Required Capital
As I mentioned before, the haulage or tipper industry requires a lot of capital to operate. In fact, some refer to this industry as the “business of the rich” as a result of this. This is why you might want to give it some serious thought before opening a haulage company in Nigeria.
If you take out a loan to launch a haulage company, the business could be crippled from the start and you might even become indebted forever. You must be confidently ready to handle all financial criteria if you wish to launch a haulage company.
You must have the financial means to purchase your trucks and make all other payments required for the registration of your company. If you won’t be driving your haulage vehicles personally, you’ll need to set aside money to pay your truck drivers’ salaries.
In Nigeria, salaries for truck drivers often range from $100,000 to $200,000. For information on how to easily fund your haulage business, you can also read my article on how to fund your business.
3. Purchasing your trucks and tippers
In Nigeria, various truck or tipper types are employed in the transport industry. These trucks range in age from relatively new to tokunbo. You can purchase new or used trucks for your haulage business in Nigeria, depending on what you can afford.
Although they are dependable, tokunbo tippers do not last as long as new ones. If you want to avoid import duties and other hassles, you may either buy the trucks in Nigeria or import them from Japan or the USA.
After purchasing your trucks, you must obtain all ownership documentation and register each vehicle with TOAN (Truck Owners Association of Nigeria).
4. Sign up for a business name
In Nigeria, starting a haulage company is impossible without the right documentation. The haulage company must first be registered as a company. You must register your haulage firm with the corporate affairs commission (CAC) in Nigeria if you want to do business there as a corporation.
Once you’ve finished, the following step is to gather all the extra paperwork required for the type of haulage business you intend to operate in Nigeria. The transportation of petroleum, sand, granite, and other materials are all businesses.
You must register with each of these transportation companies separately. Then, you must hire your truck drivers. Truck drivers with more experience are preferable than rookies. Below are the steps for registering your company name in Nigeria.
5. Start moving the goods/products
After filing all necessary paperwork, you can launch your haulage company right away. In order to help local dredging businesses move sand from one place to another, you can find your initial clients by connecting with them.
The contract you have with the dredging firms or any other customers determines how much you are paid each transport of products.
READ ALSO- How to Launch a Pure Water Business (2023)
The haulage industry in Nigeria is profitable, but it also requires more of your time and resources. To keep your business functioning and the money pouring in, you also need to interact with a lot of clients. In the future, you can easily sell your trucks or your haulage firm to a good buyer if you ever need to quit operating your business.