How to Start Transportation Business in Pakistan?

Transportation Business

Transportation BusinessSome trades are directly proportional to the existing population which means that with the population increase, these businesses also escalate.  There are also some trades which are indirectly related to the population. Movement or distribution of raw materials, finished goods, food items and other businesses all require transportation of tangible products. This movement and distribution of tangible items takes place due to a strong transportation network in a country. There are trucks, containers and various cargo services which are responsible for the distribution of millions of goods across the country. All kinds of businesses require cargo services every day no matter what the economic conditions are. This month, IBEX is shedding light on the cargo trade through trucks and containers.

Starting the Business

To start the business, one needs to buy a heavy vehicle for transportation purposes. It could be a trailer,Bedfordtruck, Mazda truck, Shehzore truck or a small Suzuki carrier. Trailers require large investment andBedfordtrucks are getting expensive in terms of their maintenance. On the other hand, small vehicles like Shehzor trucks and Suzuki carriers do not have much capacity for loading. The best investment option these days is Mazda trucks. In almost all major metropolitan cities,Bedfordtrucks are restricted to enter during day time which is why the investors prefer Mazda trucks as they are allowed to enter markets at any time. The body weight and oil consumption of these vehicles is almost half of theBedfordtrucks. Nevertheless, their capacity of loading is same as that ofBedford.

Initial Investment

A Mazda truck can be purchased with an initial investment of Rs. 15 lac to Rs. 20 lac depending upon the condition of the truck. A new Mazda truck can be purchased at a price of Rs. 15 to Rs. 20. lacs. If the truck is new, it will consume less oil and also the daily overheads will decrease.

Once the truck is purchased, the investor has to survey and assess where he can acquire business from. Multiple ways are usually employed. In the first step of initiation, a driver and a helper are needed to load and unload the trucks. These employees are usually paid on monthly basis. On an average, their total salary comes to Rs. 12,000 to Rs. 15,000.

How to get business?

It is actually the job of the driver to find business opportunities. He should have reliable contacts in the market and also know the right places where there is frequent loading/transportation work. The investor can also lend the truck to a certain transportation company or some other company for similar purposes. It all depends on the contacts of the investor and the related personnel. The most common method of getting business is from storages places or Godowns (Adaa’s). There are storage places in almost every city ofPakistanwhich deals with the transportation of all kinds of goods. Basically, they act as a middle party between the manufacturers and retailers or between crop growers and factories. Everyday, they have hundreds of tons of goods in movement. The investor or the driver must interact with the storage owners and offer them transportation services. Once the investor has developed a good understanding with one of these owners, he will be able to get business on daily basis. Transportation services can be provided to more than one storage owner. It is recommended to have a good understanding with multiple owners so that the vehicle never stops and business keeps on growing.

Trucks charge each box/packet loaded on the truck. Rate of the delivery also depends on the packing and the kind of goods being loaded on the truck. The investor has to keep an eye on the driver and his daily updates as there are a number of fraudulent activities drivers usually indulge in. It is better to personally check the daily income, expenses and other related information.

Major Expenses – Profit

Major expenses of having a truck include the monthly pays of the driver and helper costing approximately Rs. 12,000 to Rs. 15,000. Also, the investor has to provide them with lunch and dinner every day. As far as the vehicle is concerned, fuel expenses are covered from the business the investor gets. Major maintenance expenditures include oil.

The investor should give specific targets to the driver to get a certain amount of business in the form of a profit. The driver will get commission which will motivate him to look for more business. From the market survey conducted by IBEX, if an investor has a truck with a driver and a helper and an agreement with a few storage owners, he can easily make a monthly profit of around Rs. 25,000 to Rs. 40,000 . On an average, it is usually Rs. 30,000. If by chance there is crop cutting season, the business and monthly profit also increases as the traders require more transportation services.


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