Transportation is the movement of people from one place to another. This is indeed the simplest definition of transportation but transportation goes beyond the movement of people, it also includes the movement of goods, animals, crops, machines, equipment etc from one place to another. Transportation is as old as man himself. We cannot talk of people without mentioning transportation. As individuals, there are limits to our capacity to move things from one place to another. Also there are limits to distance we can cover.
In the olden days, our ancestors transport themselves and their commodities from one village to another by carrying things on their head or by using animals. As civilization came to existence such means became useless and insufficient. We are going to look into the different aspects of transportation, including the ones used by our ancestors and a brief insight into the advantages and disadvantages.
We have different types of transportation including :
We will focus on road transportation, land transportation is our main reason for this article/business plan.
In Nigeria there are four different categories in land transportation system.
1. Commercial Vehicles (Buses and Cars)
2. Commercial Tricycle (Commonly known as Keke Napep)
3. Haulage Service (Tippers, Trucks and Tankers)
4. Commercial Okada (motorcycle).
Types of Land transportation
Animal: This is the movement of people, goods, crops etc by using animals including donkey, camel etc from one place to another. It is mostly used by farmers to transport their crops from one place to another and also by travelers to move from long distance to another. The advantage is that it is cheaper, the animals only need water and food when compared to other means of transportation that requires fuel. The disadvantage is that there is a limit to what it can carry, besides the animal can fall sick or die by the way.
2. Walking : This is still in existence, people still walk long distance and even transport goods by carrying them on their head.
3. Automobile: This is a vehicle powered by internal engine. It can also be used to transport people and goods from one place to another.
4. Cycling: This includes bicycle. This can also be used to transport people and goods from one place to another. It saves time and it is one of the most cheapest means of transportation.
5. Bus: This is used for transporting people and goods from one place to another. There are different sizes/capacity. Some bus can carry 18 people or even 32 people depending on the seat.
6. Heavy duty vehicles: These are vehicles designed for heavy work for example pick up truck, truck tractor with GVWR of about 26,000 pounds, heavy duty trailers and tankers. These are used for the transportation of diesel, fuel etc. The goods transported are harmful to human health. And also when involved in accident can lead to disastrous loss of lives.
Transportation business is a very lucrative business, because people transport daily. Humans are bound to move from one place to another. And they do so mostly with public transport. Transportation business is mostly in demand during festive/celebration period like Christmas, Easter and so on. This is because people move from one place to another to be with their love ones. Let us look at the various means of road transportation and vehicles you can get to start your transportation business. These vehicles comes in their various sizes and prices.
This is very popular and affordable to get but it’s demand has reduced because Government has bound it’s use in major cities. It can only be used in limited and certain areas in the country making it almost unprofitable.
This has taken over motorcycles. It is now used in major roads and also in streets in the country. It can convey as much as 5 passengers.
Town service (Taxi)
This is vehicles used on major roads, it can accommodate as much as 6 passengers. In some cities it is used as ‘drop’. Drop is when one passenger pays for the whole seat and he/she is taken home directly.
This can convey as much as 16 or more people depending on the size.
This are heavy duty machinery.
Ways you can start transportation business in Nigeria
Tricycle (keke) / hiring service
You can purchase a keke for about 600,000 naira or buy a taxi for 1million or less depending on if it is new or tokunbo. You can hire this vehicle out to people and get daily returns from it.
Hire Purchase service
This involves buying keke or taxi and giving it out to someone to work and pay you more than the amount you bought it . For example, you buy Keke 600,000 and the person is given six months to work and pay 800,000 to you, after which he can take the keke as his own personal one.
This is the transportation of people from one place to another and a particular amount is charged. Here, you get a qualified driver.
Tips to starting transportation business in Nigeria
Conduct Feasibility Studies
This is important, you must be aware of what you are going into, this business requires thousands and even millions of naira, you can’t afford to throw your money away over ignorance. You check what the market has in store for you. The dos and donts. You will also check your competitors, ways to be unique and also unions to join. You can get these information by asking those that are there before you and also checking the internet.
There are various vehicles and their prize tags depending on your choice. We have tokunbo which is cheaper and new ones. You will need 600,000 to 1million or more to get a vehicle. It is better you go for new ones because they are better and last longer.
Registration of vehicles – Before you start your commercial transportation company ensure your vehicles are registered. There are two important registration that you must do, first is with the Federal Road Safety, and other important agencies to ensure your papers are complete. The second registration is with the National Union Road Transport Workers, NURTW. Very important.
Below are authorities where you should register your commercial vehicles
National Union of Road Transport Workers
National Association of Government Approved Freight Forwarders
Chartered Institute of Logistics and Transport
Nigerian Association of Road Transport Owners
Road Transport Employers Association of Nigeria
Location – Location is another important part of this business it can also be referred to as park. The location of your park makes it easy for customers to locate. If your park is not in a good location this will make it very difficult for customers to locate you. Passengers go to parks that is not difficult to locate because they last thing they want is stress. It is important that you start your business in a good location.
Employ Qualified Drivers – This is very important. Getting experienced and qualified driver is mostly preferable. This is to ensure safety.
Insure the Vehicles – This is also a very important part of this business if you can afford it. This will protect your vehicles from unfortunate lose.
Few Reasons why you should start transportation business
There are lots of reasons why you should start transportation business but I just want to highlights some few important reason why starting a transportation business is one of the best business you can venture into.
With the growing population of Nigeria spinning over 200,000,000 people. Urbanization has become the order of the day. Millions of people are on the road on a daily basis. people go to work, school, and place of interest. Due to the how things are in the Nigeria, there are just about 30 percent car owners so millions of people move about or travel with commercial transportation and that’s where you come in.
Whether you have a full time job or no, you can own a commercial transport company. All you have to do is get capable hands to run it from you. It is easy when you know the steps to take but if you do not, you can ask questions. This business is capable of making you a millionaire in a very short time. Although there are some key factors involved but generally with the right application the sky is your limit.
This is one business that has no season and during the festive period the numbers of commuters are even tripled, this causes increase in transportation fare thereby increasing your profitability.
Ways to sustain transportation business
Transportation business is a very competitive business and to stay on top you must be very strategic about how you run the business because it important that people not only keep coming to your transport company but also recommend it for other people as well.
1. Customer service – Have a good customer relationship
2. No delays – Avoid delays as much as you can. Nothing kills transportation business like delays because no one going on a trip likes to waste his precious time.
3. Affordable price – Transportation price should be very affordable. If there are different buses for different category of passengers. The price should be very reasonable and affordable.
4. Responsible drivers – This is a very important aspect of this business. Responsible drivers avoid over speeding. Passengers do not like when unnecessary speed.
5. Park should be clean.
6. Well behaved staffs. This is very vital. The way the staff behaves will make a passenger use the transport company again when traveling. When passengers are treated with respect they could become a loyal customer.
This Commercial Transportation Business Plan can be used to access bank loans, grant applications, proposal writing and so on. The business plan was complied after a thorough feasibility study on Transportation Business in Nigeria was done.
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