Dump Truck Haulage Business

Introduction
If you are in Nigeria, this is a business that can easily make you NGN350,000 (USD2,334) per month although it requires a considerable amount of capital.

What you need
The Dump Truck

 A good Dump truck (faily used) starts from NGN7Million  (USD47,000) but its usually cheaper if you buy from outside Nigeria. My friend Mr Mike Edo who is into the business has a business partner in Spain who buys these trucks and sends them down to Nigeria. He is available if you are interested in getting a good truck.

If you decide to buy it in parts that is, buy the Head first and then the bucket later, the head alone costs about NGN4Million (USD27,000). You can also import them at cheaper rates. The Tipper Bucket (the back portion) costs about NGN2.5Million (USD17,000) to construct and install but NGN36,000 (USD240) to rent for a day in the eastern part of Nigeria.

Business Structure

 According to my friend, the business is simple, get your truck, lease it to a construction company (currently handling construction works) for use in conveying dirt or gravel, get a Truck Manager to handle your relationship with your driver and the construction company, then you smile to the bank every month - the construction companies pay as much as NGN150,000 per day plus NGN20,000 for your driver per day.

 How you make money

Making any money in this business is guaranteed if you take care of the following;

The Company

You need a company currently carrying out a big construction project - preferably road construction. My friend currently has a trucking lease agreement with Setraco, the Construction company handling the expansion of East-West Road in PortHarcourt, Rivers State Nigeria.

Legal Entity
Such Construction companies would always deal with corporate entities and not individuals. So you have to register your trucking company as a limited liability company to be able to do business with them.

Agreement Structure
The agreement between your company & the construction company is basically for you to lease your truck to the company for a period ranging from 1 to 6 months. You will provide a driver, do your maintenance and fuel your truck while the construction company pays you monthly according to number of trips per day and your driver is paid per trip.


Truck Manager
This is the main core of your business. You need a truck manager is you are new to the business or if you have another job one if you don't have time to monitor your trucks. The truck manager usually takes care of your truck and makes sure it meets up with all the contractual agreements. This also means that he will be in-charge of cash flow and will remit to you the agreed amount every month. This is the person you have to trust and treat very well if you want to succeed in this business.
My friend, Mr Mike Edo is a truck manager and currently has 4 trucks under his oversight. According to him, "the more trucks I manage, the more money i get". He is also available to Handle more trucks or questions on this business. You can request for his contact address and I will send it to you.
You just hand your dump ruck over to him with some money to cover expenses for the first month and you sit down and watch the money pour in month after month!




Conclusion
This business is really very lucrative and you can recover your initial capital in less than two years if you have a truck manager and even much sooner if you manage your trucks yourself.

Disclaimer
While The Business Man strives to always present accurate business analysis summary, this does not replace doing your own due diligence before you go into any business.


For more information, please feel free to comment below or contact me.