Without any doubt, haulage (the movement of cargo – raw materials and finished products alike by land) plays a very important role in the economy of any nation and Nigeria is not an exception. Indeed, it is a common knowledge that over 90 per cent of cargo in Nigeria is moved by land (road and rail).
For many years in Nigeria, after independence, there has been significant growth in industrialisation and trade. This growth in economic activities led to the need for transportation of raw materials and finished goods to and from factory floors and the marketplace. For a very long time, most companies that had need for cargo transportation developed in house capacity to be able to do so. They bought their own trucks and set up in-house transport departments for this purpose.
But the 1990s came with different management thinking and philosophy that resulted in the need for companies to be efficient in operation. Indeed, with improvement in information technology and greater connectivity, the world became a global village. Needless to say, globalisation resulted in increased competition. Companies were faced with competition from all over the world. Increased competition led to businesses looking for ways to be more streamlined and efficient. Emphasis was placed on what businesses defined as their core competence while every other activity in the value chain was outsourced to other entities that are able to perform these activities better at a lower cost.
Cargo transportation was one areas many manufacturing and trading companies alike felt was not core to their operation. This was what led to rapid growth of third party logistics and haulage companies in Nigeria like in many other countries. With this development, many new commercial haulage companies came into existence in the early 2000s. A lot of investment in equity and loans went in to finance the haulage assets and operations.
However, developments in recent years have shown that there are serious challenges with the haulage business in Nigeria.
The failure rate in the haulage industry is arguably the highest of all segments of the economy. Banks have also suffered a lot of losses with the loans they granted to finance these businesses. Currently, almost all Nigerian banks have decided never to consider loan request relating to haulage assets and operations.
The challenges in the haulage business have not stopped the need for manufacturing and trading companies to transport their cargo. Indeed, many the manufacturing companies have now resulted to either insourcing their cargo transportation or developed a strategy to ensure that haulage companies are able to have access to haulage asset needed for the transportation of their cargo.
HAULMACE 2017 is therefore aimed at examining the emerging trend in the haulage business in Nigeria in order for all stakeholders to understand how they can partner and mutually profit in a safe and secured structure.
We will also discuss and closely consider the risks inherent in the business in order to mitigate them as must as possible.
Haulage & Logistics Magazine Conference & Exhibition is (HAULMACE) is the biggest gathering of decision makers in the Haulage and Logistics Industry in Nigeria. The event is organized by Haulage & Logistics Magazine- the first and widest circulating truly haulage magazine in Nigeria. The aim of the annual event is to provide a platform for advocacy and resolution of pressing issues affecting the Nigerian Haulage and Logistics Industry.
The theme of the 2017 conference is “Understanding the Emerging Trend of Haulage Business in Nigeria”. HAULMACE 2017 has been scheduled to hold on 4th October, 2017 at the prestigious City Hall, Catholic Mission Street, Lagos Island, Lagos.
The aim of HAULMACE 2017 is to bring logistics managers, haulage operators and every stakeholder in the supply chain management together so as to avail them the opportunity of discussing and understanding the emerging trends in haulage business.
After attending HAULMACE 2017, stakeholders would have understood the latest development in the haulage business and as well have an idea of workable strategy that will help them to mitigate the current challenges of the business.