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Truck - long distance transport business
Rankaz13
#41 Posted : Thursday, February 27, 2014 8:32:48 AM
Rank: Elder


Joined: 5/21/2013
Posts: 2,841
Location: Here
Mkimwa wrote:
GGK wrote:
In terms of compliance.... what do I need before my truck can operate on kenyan roads?
Speed governor? TLB? Inspection?
How much do they cost for a Mistubishi FH?


Inspection is necessary, you take the vehicle to the inspection center, if they give your vehicle a clean bill of health, you are good to go for the next 1 year.

The speed governor is also a must. The new requirements for the speed governors also apply to trucks and other commercial vehicles. I dont know anyone who has fitted the new governors as yet.

Of course you need third party insurance, and yellow card if you are going outside Kenya. Also you may need a transit licence, if you are carrying transit goods.


What about Indemnity Insurance, ama insurance ya mizigo huitwaje? Incidentally, whose responsibility should this be - the cargo owner or the transporter?
Life is like playing a violin solo in public and learning the instrument as one goes on.
Mkimwa
#42 Posted : Thursday, February 27, 2014 8:34:11 AM
Rank: Member


Joined: 10/26/2008
Posts: 380
FRM2011 wrote:
@mkimwa, you are a guru in this business. I operate one which has been okay. Been lucky to get consistent jobs mainly 40ft containers from MSA to nrb where I get paid directly.

My biggest challenge is the crew. Apart from tracking technology, how else do you manage these guys?


Am no guru, I learn everyday. The vehicles, road, crew and the market teach you new things every day!

For crew, there are some no go zones, if they mess around with those areas, they are let go immediately. Its hard to get honest crew, but if you get one - motivate them to ensure they work hard. There is fuel tracking to help you stop fuel theft. However, they will still get a few ways of getting cash from you because you are not on the road with them everydat. I have some tolerance for a few extra coins for them, as long as it doesnt touch the no-go zone. Example - if they tell me they used 200 bob for washing the vehicle, yet the vehicle is dirty... I smile and wave it on. Or parking for 100 bob instead of usual 50 bob, it doesn't make that much of a difference to bottom line.

Also, let them know who is in control - be straight with them, dont entertain nonsense or stories for that matter. They need to justify every action that is out of line, else disciplinary action pap!
Mkimwa
#43 Posted : Thursday, February 27, 2014 8:39:57 AM
Rank: Member


Joined: 10/26/2008
Posts: 380
Rankaz13 wrote:

What about Indemnity Insurance, ama insurance ya mizigo huitwaje? Incidentally, whose responsibility should this be - the cargo owner or the transporter?


Yes, there is WIBA, carriage liability, fidelity guarantee and other forms of insurance that you should take. Some insurance companies offer good package that includes all these options, e.g. CIC. Ultimately, if goods are lost while they are under care of transporter, the transporter is liable - hence insurance for this is important. Its not mandatory though.
Rankaz13
#44 Posted : Thursday, February 27, 2014 9:07:00 AM
Rank: Elder


Joined: 5/21/2013
Posts: 2,841
Location: Here
This thread actually just reminded me of a conversation I had with a friend about a year ago on this biz. The guy has a few of the kawaida miguu sita na miguu kumi trucks that ferry cargo all over the country. I recall him mentioning that in case an accident happens and the cargo spills (e.g in case of cereals/grains, etc), then whatever the cargo the truck was carrying 'belongs' to the cops, yaani wanasemaje hiyo ni yao and should you not play ball, they simply let the wananchi free to pilfer/loot from your overturned truck.

This story came up when I asked him about insurance for the cargo. He related a particularly nasty incident for him that happened somewhere near the Machakos turnoff where, en route from Msa, one of his drivers went too far out of his lane in an attempt to avoid an accident and the truck toppled over since the road shoulders were worn out. Luckily, one of his other trucks was nearby and assisted the other colleague to secure the cargo, something that the cops were apparently not happy about.

Being an accident, it obviously had to be reported to the police station. Imagine his shock when the driver was locked up on trumped up charges, all because he was 'clever' enough to secure the client's cargo!
Life is like playing a violin solo in public and learning the instrument as one goes on.
GGK
#45 Posted : Thursday, February 27, 2014 10:57:47 AM
Rank: Member


Joined: 11/21/2006
Posts: 608
Location: Ruiru
Mkimwa wrote:
GGK wrote:
In terms of compliance.... what do I need before my truck can operate on kenyan roads?
Speed governor? TLB? Inspection?
How much do they cost for a Mistubishi FH?


Inspection is necessary, you take the vehicle to the inspection center, if they give your vehicle a clean bill of health, you are good to go for the next 1 year.

The speed governor is also a must. The new requirements for the speed governors also apply to trucks and other commercial vehicles. I dont know anyone who has fitted the new governors as yet.

Of course you need third party insurance, and yellow card if you are going outside Kenya. Also you may need a transit licence, if you are carrying transit goods.


Thanks...

Any word on Advance Tax?
"..I am because we are. "― Ubuntu, Umtu,
Mkimwa
#46 Posted : Thursday, February 27, 2014 2:13:43 PM
Rank: Member


Joined: 10/26/2008
Posts: 380
GGK wrote:
Mkimwa wrote:
GGK wrote:
In terms of compliance.... what do I need before my truck can operate on kenyan roads?
Speed governor? TLB? Inspection?
How much do they cost for a Mistubishi FH?


Inspection is necessary, you take the vehicle to the inspection center, if they give your vehicle a clean bill of health, you are good to go for the next 1 year.

The speed governor is also a must. The new requirements for the speed governors also apply to trucks and other commercial vehicles. I dont know anyone who has fitted the new governors as yet.

Of course you need third party insurance, and yellow card if you are going outside Kenya. Also you may need a transit licence, if you are carrying transit goods.


Thanks...

Any word on Advance Tax?


Advance tax is usually paid before registeration of vehicle with KRA, and every year thereafter before inspection. However, once the tax computation for the year are done, you deduct the advance tax, to get the net amount to be paid to KRA.
GGK
#47 Posted : Friday, February 28, 2014 8:18:20 AM
Rank: Member


Joined: 11/21/2006
Posts: 608
Location: Ruiru
Thanks all.... Am good to go.

Those who can get transport contracts can throw in some left-overs.


"..I am because we are. "― Ubuntu, Umtu,
guru me
#48 Posted : Tuesday, March 11, 2014 4:09:37 AM
Rank: New-farer


Joined: 6/27/2011
Posts: 63
I did the business and can tell you it is not for the faint of heart.
For anyone who is new to the business here is my two cents worth.

My suggestion is if you are not available to go to the truck at short notice or lack a trusted surrogate for the same purpose, think twice.

Common pitfalls and things to watch out for:
Siphoning of fuel by crew and topping up with substandard stuff. Your engine pistons will have a very short life. Also dont fuel at non-descript petrol stations no matter how much cheaper the fuel is. Find a branded petrol station you like and stick to them to create a relationship. Getting fuel on credit would be a great boost to this cashflow intensive business.

Being told tyres burst (imechapa) along the way. You need to mark your tyres or get the serial number and demand that the pieces of the blown one are brought to you.

The truck owner was almost always the last person to get paid. Everyone else has a superceding claim. Your crew will demand mileage allowance before they leave the port, cops on the way demand their usual fifty - and there are many road blocks every few kilometers for the sole purpose of that ka fifty, insurance gets paid whether you make money or not etc. Brokers demand "jembe" before you "pakia". Fuel is paid upfront. Theres no workaround around for this if you are just starting off. With time you can bypass the broker and get fuel on credit but the cops and other expenses require you to have a good working capital.

Broker theft; make sure you know who the eventual owner of the mzigo is. I have had brokers make me transport stuff and then go and collect the final fee in my name and never hear from them again. Almost broke the sixth commandment over one such goon.

Service your vehicle after the required mileage. Dont take shortcuts on this- it will cost you more in the long run.

If you have a trusted crew put new tyres all round. Most people prefer retreads which are cheaper but the crew will always have an excuse of mguu imechapa. On the downside if you dont trust your crew dont dare put new tyres. At a cost of between 40 to 80k a piece 18 tires would have a value of close to 1 m. This is unneceasrily tempting the poor guys.

Find a good mechanic and develop a relationship with him. Do not trust your vehicle to many people. A mechanic was able to point out when a turbo charger from one of the newer units was swapped for an old one. Would never have known until a few months later when the old turbo charger conked out. I have heard of fellows losing gearboxes, clutch plates, etc.

Take a ride in each truck at least once every month if the fleet is manageable. You will be able to tell if somethings not right and to observe the drivers habits. Some of them stop at each town for drinks and women of the night. You do not want a party monster on your hands.

As a general rule I found older drivers to be more reliable than the younger ones.

Even if you are starting out seek to get full payment upfornt (very hard) or at least insist to have the truck fuelled and the mileage allowance paid to driver and turn boy. Your money at risk is minimised.

Seek to get contracts with reputable companies. This is the only way you can survive long term. Short term jobs are very unpredictable. Sometimes you have too many, sometimes you have none. Sometimes they pay well, sometimes not.

Prefer short routes to longer ones. Nairobi Mombassa was my ideal route although supply for this was limited for me. Kampala MSA was my next favourite route. Good roads and easy to sort out any issues.

Insure comprehensive if you can afford. A lot of agents can arrange insurance premium financing such that you pay your premiums on a monthly basis. Its very easy for a sleepy driver to tip over your truck.

If you have more than one truck and have a contract, try and have the trucks travel together. There is more security against thieves especially hapo kiima kimwe (among many other places) - kina Kalembe and his brethren are still at it cutting locks and stealing goods while your truck is climbing steep hills.

Trust nobody. Everyone is out to get you. Approach the business this way and take the necessary precautions.

Pray. Theres so much that can go wrong and ultimately some things are out of your hands. Entrust them to the one who can foresee them.

Know its a long post but wish Id had someone who told me some of this things before I started. Hope it helps someone out there.

iKenya
#49 Posted : Tuesday, March 11, 2014 4:27:59 AM
Rank: Member


Joined: 7/27/2008
Posts: 241
One of the most comprehensive analysis I have seen on Wazua..Asante and keep it up! Wahe Guru!
Quote:
Buy when there's blood in the streets, even if the blood is your own...
Rankaz13
#50 Posted : Tuesday, March 11, 2014 9:29:06 AM
Rank: Elder


Joined: 5/21/2013
Posts: 2,841
Location: Here
guru me wrote:
I did the business and can tell you it is not for the faint of heart.
For anyone who is new to the business here is my two cents worth:

My suggestion is if you are not available to go to the truck at short notice or lack a trusted surrogate for the same purpose, think twice.

Common pitfalls and things to watch out for:
Siphoning of fuel by crew and topping up with substandard stuff. Your engine pistons will have a very short life. Also don't fuel at non-descript petrol stations no matter how much cheaper the fuel is. Find a branded petrol station you like and stick to them to create a relationship. Getting fuel on credit would be a great boost to this cashflow intensive business.

Being told tyres burst (imechapa) along the way. You need to mark your tyres or get the serial number and demand that the pieces of the blown one are brought to you.

The truck owner was almost always the last person to get paid. Everyone else has a superceding claim. Your crew will demand mileage allowance before they leave the port, cops on the way demand their usual fifty - and there are many road blocks every few kilometers for the sole purpose of that ka fifty, insurance gets paid whether you make money or not etc. Brokers demand "jembe" before you "pakia". Fuel is paid upfront. There's no workaround around for this if you are just starting off. With time you can bypass the broker and get fuel on credit but the cops and other expenses require you to have a good working capital.

Broker theft; make sure you know who the eventual owner of the mzigo is. I have had brokers make me transport stuff and then go and collect the final fee in my name and never hear from them again. Almost broke the sixth commandment over one such goon.

Service your vehicle after the required mileage. Don't take shortcuts on this- it will cost you more in the long run.

If you have a trusted crew put new tyres all round. Most people prefer retreads which are cheaper but the crew will always have an excuse of mguu imechapa. On the downside if you don't trust your crew don't dare put new tyres. At a cost of between 40 to 80k a piece 18 tires would have a value of close to 1 m. This is unnecessarily tempting the poor guys.

Find a good mechanic and develop a relationship with him. Do not trust your vehicle to many people. A mechanic was able to point out when a turbo charger from one of the newer units was swapped for an old one. Would never have known until a few months later when the old turbo charger conked out. I have heard of fellows losing gearboxes, clutch plates, etc.

Take a ride in each truck at least once every month if the fleet is manageable. You will be able to tell if somethings not right and to observe the drivers habits. Some of them stop at each town for drinks and women of the night. You do not want a party monster on your hands.

As a general rule I found older drivers to be more reliable than the younger ones.

Even if you are starting out seek to get full payment upfornt (very hard) or at least insist to have the truck fuelled and the mileage allowance paid to driver and turn boy. Your money at risk is minimised.

Seek to get contracts with reputable companies. This is the only way you can survive long term. Short term jobs are very unpredictable. Sometimes you have too many, sometimes you have none. Sometimes they pay well, sometimes not.

Prefer short routes to longer ones. Nairobi Mombassa was my ideal route although supply for this was limited for me. Kampala MSA was my next favourite route. Good roads and easy to sort out any issues.

Insure comprehensive if you can afford. A lot of agents can arrange insurance premium financing such that you pay your premiums on a monthly basis. Its very easy for a sleepy driver to tip over your truck.

If you have more than one truck and have a contract, try and have the trucks travel together. There is more security against thieves especially hapo kiima kimwe (among many other places) - kina Kalembe and his brethren are still at it cutting locks and stealing goods while your truck is climbing steep hills.

Trust nobody. Everyone is out to get you. Approach the business this way and take the necessary precautions.

Pray. There's so much that can go wrong and ultimately some things are out of your hands. Entrust them to the one who can foresee them.

Know its a long post but wish Id had someone who told me some of this things before I started. Hope it helps someone out there.



Very well put.Applause Applause Thank you. Applause Applause
Life is like playing a violin solo in public and learning the instrument as one goes on.
Kratos
#51 Posted : Tuesday, March 11, 2014 9:29:33 PM
Rank: Veteran


Joined: 9/19/2011
Posts: 1,694
@ Mkimwa/Rankaz/Guru me/GGK

Am told the speed governors do not apply to all trucks is this true and which ones are affected?

“People will believe a big lie sooner than a little one, and if you repeat it frequently enough, people will sooner or later believe it.” ― Walter C. Langer
kysse
#52 Posted : Tuesday, March 11, 2014 11:13:56 PM
Rank: Elder


Joined: 1/17/2013
Posts: 4,693
Location: Earth
1.Who goes to Juba/Kla/TZ/Kigali/from Nbo?

2. Also need 2x20'-gw up to 28 mtons spread over the two containers to Mba from Nbo.


Will require some documents from you including insurance.
Somebody is too slow to quote.




kysse
#53 Posted : Tuesday, March 11, 2014 11:24:13 PM
Rank: Elder


Joined: 1/17/2013
Posts: 4,693
Location: Earth
Mkimwa wrote:

As for the Prime mover, a vehicle with double diff allows you to carry 2t extra than the normal ones (with leading axle), which can only carry maximum of 28t.


This feedback alone made me day.
God bless you abundantly.smile


Rankaz13
#54 Posted : Wednesday, March 12, 2014 9:31:29 AM
Rank: Elder


Joined: 5/21/2013
Posts: 2,841
Location: Here
Kratos wrote:
@ Mkimwa/Rankaz/Guru me/GGK

Am told the speed governors do not apply to all trucks is this true and which ones are affected?


Sorry I do not have info on this @Kratos. How about you contact your nearest motor-vehicle inspection unit?
Life is like playing a violin solo in public and learning the instrument as one goes on.
CLK
#55 Posted : Wednesday, March 12, 2014 1:34:16 PM
Rank: Member


Joined: 4/1/2009
Posts: 846
kysse wrote:
1.Who goes to Juba/Kla/TZ/Kigali/from Nbo?

2. Also need 2x20'-gw up to 28 mtons spread over the two containers to Mba from Nbo.


Will require some documents from you including insurance.
Somebody is too slow to quote.







Kysse, please contact me jallkke@yahoo.com
CLK
#56 Posted : Wednesday, March 12, 2014 1:43:38 PM
Rank: Member


Joined: 4/1/2009
Posts: 846
simonkabz wrote:
Kindly avoid MAN!

Care to give details?
Mkimwa
#57 Posted : Wednesday, March 12, 2014 3:14:39 PM
Rank: Member


Joined: 10/26/2008
Posts: 380
kysse wrote:
1.Who goes to Juba/Kla/TZ/Kigali/from Nbo?

2. Also need 2x20'-gw up to 28 mtons spread over the two containers to Mba from Nbo.


Will require some documents from you including insurance.
Somebody is too slow to quote.






Kysse,
Weka contacts, or send me mail - nditika@gmail.com.
Ric dees
#58 Posted : Wednesday, March 12, 2014 3:43:50 PM
Rank: Member


Joined: 3/6/2008
Posts: 632

I have been in this business for 2 years now, and as rightly put - its not for the faint hearted. I am in fuel transport servicing 2-3 year contracts to the Great lakes region. KLA, Kigali, DRC and Juba. The are all 6x2 Axors semi-used acquired from UK where i get financing from.

I have employed someone who deals with the day to day running of the trucks, so do not deal with the nitty gritty of the everyday operations. The easily make $2500 per week however i have been exiting the business slolwy now remaining with 3 trucks as have other ventures to pursue.

The make or break in this business is kind of contract, crew and cash flow - The guy who gave me the contracts introduced me to a petrol station owner who gives me fuel for 60-90 days and
then pay him.I have seen guys get it wrong when they try to "tega" goods at the port and for the life of me this is an avenue i would not pursue.

Like all things i must say it was fun, learnt loads now there other fish to fry.

The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday's logic.
GGK
#59 Posted : Wednesday, March 12, 2014 5:47:07 PM
Rank: Member


Joined: 11/21/2006
Posts: 608
Location: Ruiru
Kratos wrote:
@ Mkimwa/Rankaz/Guru me/GGK

Am told the speed governors do not apply to all trucks is this true and which ones are affected?


Apparently all commercial service vehicles with tare weight of 3408kgs and above will need to fit these new digital speed governors

See link http://www.ntsa.go.ke/im...17%20of%2016-12-2013.pdf
"..I am because we are. "― Ubuntu, Umtu,
Kratos
#60 Posted : Wednesday, March 12, 2014 7:33:49 PM
Rank: Veteran


Joined: 9/19/2011
Posts: 1,694
Rankaz13 wrote:
Kratos wrote:
@ Mkimwa/Rankaz/Guru me/GGK

Am told the speed governors do not apply to all trucks is this true and which ones are affected?


Sorry I do not have info on this @Kratos. How about you contact your nearest motor-vehicle inspection unit?



Sure will do, thanks

“People will believe a big lie sooner than a little one, and if you repeat it frequently enough, people will sooner or later believe it.” ― Walter C. Langer
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