How To Enjoy Optimal Fiscal Benefits In Haulage Business

By Kenneth Jukpor

Mr. Adewale Adetayo is the General Manager, SIFAX Haulage & Logistics Limited. During the formal commissioning of twenty new trucks by SIFAX at the SIFAX Bonded Terminal, Okota, Lagos, Adewale granted this interview to MMS Plus.

Enjoy it:

What is the significance of these new trucks to your operations at SIFAX Haulage and the haulage industry at large?

What you have witnessed here today is an investment to scale up the opportunities for haulage services in the company. When I emerged General Manager of SIFAX Haulage, I observed that the demand for haulage related businesses in Nigeria is huge and the fact that we have attained a robust customer base over the years brought us to a position where the demand was more than the available trucks. Hence, we had to increase our fleet with twenty new trucks that takes the total number of SIFAX trucks to 75. The best way to describe this feat is to say it is a ‘dream come true’.

There are several challenges with trucking business in the country, with the road infrastructure making the trucking business look like an unviable one. I want to encourage everyone who has the money to go into this business to do it because it is a rewarding venture. Transportation isn’t receiving the requisite attention it deserves, although it drives the nation’s economy. I also want to encourage the government to invest more in developing the infrastructure so that investors like SIFAX can be able to play a significant role in this industry.

This acquisition couldn’t have come at a better time as the company is currently experiencing various challenges in the discharge of its duties, especially that of inadequate equipment. The business is growing by the day as different discerning clients are signing deals with us due to the quality of our customer-focused service – consignment transfer and nationwide delivery executed by well-motivated workforce. This phenomenal growth has put us under pressure and we are glad today that these new trucks will help in fulfilling our brand promise as we scale up our capacity to meet our clients’ needs.

As these new trucks join our fleet, our promise to all our clients and the management of the group is that there shall be positive impact of this investment in terms of increased revenue generation, reduction in service breakdown, increased turnaround time and a more-satisfied clientele base.

You have twenty new trucks here; can you tell us the cost of these trucks?

The vehicles cost over N1billion. There are two categories of trucks here. The trucks are brand new European trucks with 420 HP rating. Ten of them are ‘6 by 4’ double axles and others are ‘2 by 4’ also called single axles. SIFAX management has equally invested heavily on procurement of 10 triaxle flatbeds with 48 tonnage capacity to compliment the pulling strength of the earlier mentioned trucks. By implication, we are now positioned to compete favourably in this heavily competitive industry.

How would you describe the opportunities as well as the challenges peculiar to the trucking industry in Nigeria?

This industry is one of the highest employers of labour in the country. These 20 new trucks represent massive employment opportunities directly and indirectly. These trucks would provide employment for a minimum of 50 people directly. You need 20 drivers and spare drivers and also another category of people as assistants that are popularly known as ‘motor-boys’ in Nigeria. These people represent different families and you can imagine the multiplier effect on the nation’s economy.

This investment means that SIFAX is going to take several people off the streets; giving them employment opportunities and we are going to train them.

Several people have gone into trucking business and lamented that the problems are overwhelming especially dealing with dubious drivers. How do you manage this challenge?

At SIFAX, we always hire professionals. However, most people who go into haulage business fail to realize that managing the trucks starts from the quality of spare-parts. While they see the business as a cash-cow, they fail to manage the vehicle properly. You also need to understand how to charge clients and how to appropriate your cost. You should charge according to the distance you are going to cover as you have to take into consideration the extra diesel spent to farther locations. You also need to understand the driver’s needs and characteristics.

We urge all the SIFAX haulage drivers to use these vehicles strictly for the official purposes they were procured for and insist that on no account should the vehicles be used for unofficial purposes, such as diversion, loading of unauthorized goods and persons, selling off AGO, batteries, tyres and other ancillary items.

In order to discourage arbitrary use of the vehicles for purposes other than the discharge of official duties, the vehicles have been installed with Video tracking devices that will enable us monitor their movements centrally from the office and other remote devices. Consequently, any driver that runs afoul of the ethical use of the vehicles shall be disciplined in accordance with our corporate policy.

Drug abuse has become a challenge among truck drivers in the country today, how do you intend to curb this menace?

We have a device in the office to check our drivers in order to detect any addiction to drugs and other substance. We also give pep-talks to drivers on the need to abstain from drinking alcohol and the effects of drug addiction. I have spent barely three months as the General Manager, SIFAX Haulage, but we have carried out several trainings and sensitization on this subject of drugs. We also have more training lined up because we want them to understand these issues and be able to overcome stress and other challenges. We believe in continuous training and retraining of drivers. We also encourage the government to play its part because most of these drugs are imported.

The Federal Government is making plans to link the nation’s ports via the rail to the hintherlands and rail transport is tipped as the next phase of transport in the country. How is SIFAX Haulage planning to flow with the tide ‘rail haulage’?

Of course, we are going to partake in rail business because we are a multi-modal company in transportation. However, I would propose that the government also connects rail lines to Offdock terminals and the dry ports. This would ensure that fewer vehicles are needed at the major ports are some of the goods would be conveyed via rail to a certain location before trucks can complete the distribution.