One of the most popular products in Zimbabwe that requires constant movement from one part of the country to the other is fuel. Transportation of various fuel products in Zimbabwe constitute one of the biggest haulage opportunity in the country. It’s very profitable to start a fuel tanker transport business in Zimbabwe. As the mode of transport that brings most oils to their final destination, the tanker trucking industry is indispensable the well-being of the economy of Zimbabwe.
The tanker trucking industry employs thousands of people, and offers the primary means for moving domestic, trans-border, and international fuel. This article will outline how to start a profitable fuel tanker trucking business in Zimbabwe, and the fuel tanker business plan. Before you start a fuel tanker business in Zimbabwe, you have to decide on the size of your business i.e. the number of trucks you will be starting with, and your target market. You should always carry out a feasibility study, market research and write a business plan before you venture into any business. Do not make the mistake of starting a trucking business or any other business just because someone is doing it and he/she says it’s profitable.
What you need
You will need a garage for the tanker transport business. This is where you will be operating from, and where your offices will be based. You may buy or rent a garage in the industrial areas e.g. if you are operating from Harare you may get a Garage in the Southerton and Workington industrial areas.
Vehicles and Equipment
You will need to purchase trucks for your tanker transport business. Most people purchase the vehicles online from the United Kingdom and Japan. You can also purchase the trucks from truck sales in South Africa e.g. Mussina, and from local companies in Harare. The kind of trucks you need will depend on your target market and the capital you have. When choosing trucks to buy, there are several factors you have to consider. These include: fuel usage, availability of sleeper cab, financing costs, engine horsepower , automatic vs manual, new vs second hand, gross vehicle mass e.t.c.
If you have limited capital, you can start with 1 tanker. You can then purchase more tankers in the future from the profits of your tanker trucking business. The other equipment needed for your tanker business includes dipstick, dip chart, offloading hose, meter, coupling, garage equipment and repair tools. The drivers should always travel with basic repair tools such that if they encounter minor problems along the way, they can always fix the trucks.
Insurance for your tanker trucking business
You are required by Road Traffic Act to have Third Party Insurance for your tanker transport business. This is a legal requirement, and you cannot operate a trucking business without this insurance. This is the most basic cover and protects the client (or insured/policyholder) against loss or damage to third Party Properties in the course of driving, and death or bodily injury to these Third Parties only.
It’s also better to take fully comprehensive insurance for your tanker transport business. This is the most extensive and complete form of motor insurance cover, which covers third party insurance, fire and theft, and also provides accidental damage to the policyholder’s vehicle. It is important to protect all of the assets of the business. Appropriate and adequate insurance coverage is an important part of this. Insurance cover can be arranged through an insurance company directly, through an agent of an insurance company, or through an insurance broker. There are many insurance companies in Zimbabwe. All insurance companies and brokers in Zimbabwe must be licensed with the Insurance and Pension Commission (IPEC).
Licenses for tanker trucking business
To operate a tanker transport business in Zimbabwe, you need to pay vehicle license fee, obtain an operator’s license, a route authority, and certificate of fitness from the VID. You also need Hazchem certificate when you are in the fuel transportation business. If you are operating a cross boarder trucking transport business, e.g. Harare to Mozambique, you will also need a Bilateral Permit. You also need a Common Market for Eastern and Southern Africa (CoMESA) Carrier licence when operating inter-country transport business in Southern Africa.
Management and Staff
The number of employees you need will depend on the size of your tanker transport business. There is need for employees to handle finance and accounting issues. For a small transport business, this can be done by the owner of the business. As the business grows, there is need to hire full time staff that will be responsible for all the day to day transactional accounting for the tanker transport business, and management of the organization’s cash flow, ensuring there are enough funds available to meet the day to day payments. Marketing staff is also required. They are responsible for marketing the company and its trucks through various means which include advertising. You need to retain and acquire new customers to be profitable in the tanker transport business.
You require a fully functional operations department. The operations department is responsible for handling the operations of the trucking company. It includes supervisors, drivers, assistants, logistics personnel, mechanics etc. It is responsible for organizing the trips, transportation of the fuel, studying the routes etc. They are responsible for allocating trucks to the clients, allocation of the drivers and mechanics. They are also responsible for acquiring fuel needed; spare parts, tires and anything which the company needs to operate. Operations staff take care of all the logistics, managing the flow of goods from the point of origin to the destination in order to meet requirements of customers or corporations.
Market for Tanker Trucking Business
The market for the fuel transportation business is huge. Service station owners are the largest transporters of fuel in Zimbabwe, pushing millions of litres per-month. There are over a thousand service stations in Zimbabwe. Their main business is to sell fuel so these are recurring clients if you give them service satisfaction. Large scale farmers require tankers to transport fuel for use in farm machinery and vehicles which include tractors, trucks for transporting produce, combine harvesters and generators. The construction industry is another source of hiring for the fuel carrier industry. They use a lot of heavy machinery like cranes, forklifts and bulldozers that have a huge appetite for diesel. Mining Industry and commercial transport companies is also another huge market for a fuel tanker business.
Profitability of the tanker transport business
The tanker transport business is very profitable when it is operated efficiently and managed properly. The tankers need to be serviced regularly to ensure that they are always in roadworthy condition. Ensure that you are running cost-efficient vehicles. Keep a record of vehicle-related costs and services. You need to properly account for all the money the trucking business generates. Do not mix personal and business funds. To be successful in the trucking business, you should be able to get loads to transport frequently, and contracts. Thus it is of great importance to have a solid marketing strategy. You should provide good service with excellent customer service. The tanker trucking business in Zimbabwe is very lucrative. Local trucks will get an average of $1000-$1300 when carrying fuel from Harare to Bulawayo.
Pre-Written Tanker Transport Business Plan (PDF, Word And Excel) : Comprehensive Version, Short Bank Loan Version, Automated Excel Financial Statements
For an in-depth analysis of the tanker transport business in Zimbabwe, purchase our business plan. We decided to introduce the business plans after noting that many Zimbabweans were venturing into the tanker trucking business without a full understanding of the industry, market, how to run the business, the risks involved, profitability of the business and the costs involved, leading to a high failure rate of their businesses.
Our business plan will make it easier for you to launch and run a tanker transport business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as the tanker trucking business plan will lay out all the costs involved in setting up and running the business. The tanker trucking business plan is designed uniquely for the Zimbabwean market.
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Uses of the Fuel Tanker Business Plan (PDF, Word And Excel)
The tanker transport business plan can be used for many purposes including:
- Raising capital from investors/friends/relatives
- Applying for a bank loan
- Start-up guide to launch your tanker transport business
- As a project proposal
- Assessing profitability of the fuel transportation business
- Finding a business partner
- Assessing the initial start-up costs so that you know how much to save
- Manual for current business owners to help in business and strategy formulation
Contents of the Tanker Transport Business Plan (PDF, Word And Excel)
The fuel tanker business plan includes, but not limited to:
- Market Analysis
- Industry Analysis
- Automated Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, loan repayment calculations, start-up costs)
- Marketing Strategy
- Risk Analysis
- SWOT & PEST Analysis
- Operational Requirements
- Analysis of profitability of the routes which are frequently taken by tankers in Zimbabwe
- Government regulations, Licence requirements and Licence Fees
- Operational Strategy
- Why some Zimbabweans in fuel tanker business fail, so that you can avoid their mistakes
- Ways to raise capital to start your tanker transport business in Zimbabwe
The fuel transportation business plan package consist of 4 files
- Tanker Fuel Transport Business Plan – PDF file (Comprehensive – 76 pages)
- Fuel Tanker Business Plan – Editable Word File (Comprehensive – 76 pages)
- Tanker Transport Business Plan Bank Version – Editable Word File (Short version for applying for a loan – 45 pages)
- Fuel Tanker Transport Business Plan Automated Financial Statements – (Editable Excel file)
Business plan last updated in November 2018.
The financial statements are automated. This implies that you can change eg rate per KM, number of trips made etc, and all the other financial statements will automatically adjust to reflect the change.
Get the Fuel Tanker Transport Business Plan (PDF, Word And Excel)
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