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Truck - long distance transport business
Mkimwa
#1 Posted : Tuesday, February 18, 2014 4:34:04 PM
Rank: Member


Joined: 10/26/2008
Posts: 380
This thread is mainly for sharing experiences/ideas about long distance transport/trucking business.

I am in the business, with trucks shuffling between MSA-KMP or from NRB-KMPL, or wherever the work comes. It has its challenges:
- Crew - they make or break the business. Dishonest crew are even worse.
- Mechanics - getting a reliable one is a challenge.
- Weighbridges - they will be your friends for as long as you dont overload.
- Police - not too much, unless your vehicle is in bad shape.
- Financing - high capex required, however if you go the bank financing way - I guarantee you will work for the bank day in day out.
- Accidents - not too major, unless your driver is a drunk idiot, or you are really unlucky.
- Cash flows - This is a cashflow business, you cannot hack without being liquid at all times.
- Brokers - They can steal your cash, they give you bad loads, the quietly escape whenever there is a problem. If you are new, they can be your best friends - if you have a good contacts, they can keep you going until you get your own clients.

This is to start the discussion, we can discuss more as we go on.
mawinder
#2 Posted : Tuesday, February 18, 2014 4:54:35 PM
Rank: Elder


Joined: 4/30/2008
Posts: 6,029
Mkimwa wrote:
This thread is mainly for sharing experiences/ideas about long distance transport/trucking business.

I am in the business, with trucks shuffling between MSA-KMP or from NRB-KMPL, or wherever the work comes. It has its challenges:
- Crew - they make or break the business. Dishonest crew are even worse.
- Mechanics - getting a reliable one is a challenge.
- Weighbridges - they will be your friends for as long as you dont overload.
- Police - not too much, unless your vehicle is in bad shape.
- Financing - high capex required, however if you go the bank financing way - I guarantee you will work for the bank day in day out.
- Accidents - not too major, unless your driver is a drunk idiot, or you are really unlucky.
- Cash flows - This is a cashflow business, you cannot hack without being liquid at all times.
- Brokers - They can steal your cash, they give you bad loads, the quietly escape whenever there is a problem. If you are new, they can be your best friends - if you have a good contacts, they can keep you going until you get your own clients.

This is to start the discussion, we can discuss more as we go on.

Thinking of getting an ex UK AXOR truck for Nairobi Malaba route or Nairobi Mombasa route,what should I look out for and what are the potential returns for a starter?Do I get a flat bed trailer or a tipping one like the one for clinker?
Mkimwa
#3 Posted : Tuesday, February 18, 2014 5:16:49 PM
Rank: Member


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

Thinking of getting an ex UK AXOR truck for Nairobi Malaba route or Nairobi Mombasa route,what should I look out for and what are the potential returns for a starter?Do I get a flat bed trailer or a tipping one like the one for clinker?


Do you have a market already identified? Do you have any contract at the moment? That should dictate the kind of trailer to get. If no specific contract, then I suggest you get the very flexible High drop side trailer. It can do containers, can do loose cargo, can carry steel, can do live animals. Its limitation are that it cannot carry specialized goods, e.g. clinker, vehicles, e.t.c.

As for the AXOR - please forget about the manual ones (Rungu). They will give you a hell of a time to maintain, especially if you get a careless driver. The semi-automatic gear box on the AXORS is available from 2008 models i believe. Also avoid Euro 5 engines that need Adblue. General mileage is below 600-700K kms. Scout around for a while before settling for one. There is a wazuan - JKMwatha who can do due diligence for you from UK.

The returns depend on so many factors - its hard to give a number without going into specifics of what route you are using, what kind of cargo you are using, tonnage e.t.c.
subaru
#4 Posted : Tuesday, February 18, 2014 5:44:19 PM
Rank: Member


Joined: 3/15/2010
Posts: 391
Location: nairobie
@ mkimwa how are the returns is it advisable to buy a locally used one or buy a new one which models are good eg actros renault scania vw mann
Mkimwa
#5 Posted : Tuesday, February 18, 2014 6:52:36 PM
Rank: Member


Joined: 10/26/2008
Posts: 380
subaru wrote:
@ mkimwa how are the returns is it advisable to buy a locally used one or buy a new one which models are good eg actros renault scania vw mann


Actros is king of the road, at least in Kenya (In Malawi - the Freighliners take that spot, in Tanzania - Scanias). The spares are available, as well as the expertise. Axor is also good, but maintenance costs can be high.
Scania is next popular. These two are the most common on the road.

MANs have increased in the last few years, the skill levels in the country to maintain them is still wanting. Not too many people understand the workings, as such, would advice dont touch. They are quite cheap.

I dont have any experience on renault/VW/Volvo - hence cannot comment on those.

I would always go for a second hand imported directly from UK. The locally used ones can be harbouring unknown issues.. and you find out once your money is gone. I think the imported ones give a relatively good running time before they get issues.
Outvestor
#6 Posted : Tuesday, February 18, 2014 10:19:06 PM
Rank: Member


Joined: 8/8/2009
Posts: 171
Mkimwa wrote:
subaru wrote:
@ mkimwa how are the returns is it advisable to buy a locally used one or buy a new one which models are good eg actros renault scania vw mann


I would always go for a second hand imported directly from UK. The locally used ones can be harbouring unknown issues.. and you find out once your money is gone. I think the imported ones give a relatively good running time before they get issues.


Another option is to source for one locally from an auction, if you don't mind 'profiting from someone else's misery'.
It's advisable that you engage the services of a trusted mechanic during the viewing phase.
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simonkabz
#7 Posted : Tuesday, February 18, 2014 10:36:40 PM
Rank: Elder


Joined: 3/2/2007
Posts: 8,776
Location: Cameroon
Kindly avoid MAN!
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Outvestor
#8 Posted : Tuesday, February 18, 2014 10:55:11 PM
Rank: Member


Joined: 8/8/2009
Posts: 171
Mkimwa wrote:
As for the AXOR - please forget about the manual ones (Rungu). They will give you a hell of a time to maintain, especially if you get a careless driver. The semi-automatic gear box on the AXORS is available from 2008 models i believe. Also avoid Euro 5 engines that need Adblue. General mileage is below 600-700K kms. Scout around for a while before settling for one. There is a wazuan - JKMwatha who can do due diligence for you from UK.


Your options will diminish as the years go by.
1. Starting from 2007 models, Mercedes trucks increasingly come in either semi-automatic or fully-automatic gearbox configuration.

2. Strict emissions control standards in Europe imply that Adblue dependent trucks will become common. Luckily, there's plenty of expertise should you need to disable the Adblue system locally. Some dealers in UK also offer to do the same before shipping - at a fee.

Yes, local mechanics currently have challenges with disabling the AdBlue system on Euro 5 (BlueTech 5) trucks. This may change with time.

A semi-automatic Mercedes Benz Axor truck with Electronic Power Shift(EPS) and a clutch pedal offers good balance between Capex and Opex.
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Rankaz13
#9 Posted : Tuesday, February 18, 2014 11:13:11 PM
Rank: Elder


Joined: 5/21/2013
Posts: 2,841
Location: Here
Whoah, na nilidhani najua magari na mainjini. So much jargon here Sad , kindly break it down for us tafasare e.g. AdBlue ni nini? Na je Euro 5 (BlueTech 5)?d'oh!

Nice threadApplause , masomo iendelee.
Life is like playing a violin solo in public and learning the instrument as one goes on.
Outvestor
#10 Posted : Wednesday, February 19, 2014 2:06:09 AM
Rank: Member


Joined: 8/8/2009
Posts: 171
Rankaz13 wrote:
Whoah, na nilidhani najua magari na mainjini. So much jargon here Sad , kindly break it down for us tafasare e.g. AdBlue ni nini? Na je Euro 5 (BlueTech 5)?d'oh!

Nice threadApplause , masomo iendelee.


I'll keep it very simple for the sake of clarity. Relevant reference links are embedded in the text for further reading.

Euro X Jargon
Through a series of directives, the European Union seeks to cut down on the amount of polluting exhaust emissions. The acceptable limits grow progressively more stringent with time and have binding compliance time-lines. Thus, we talk of :

Standard (Date of Enforcement)
======== ================
Euro 1 (1993)
Euro 2 (1996)
Euro 3 (2000)
Euro 4 (2005)
Euro 5 (2008/9)
Euro 6 (2014)

From the above, you can almost correctly predict the emissions rating of an ex-EU vehicle based on the year of manufacture.

AdBlue Jargon
Two major approaches are employed so as to comply with the emissions standard :

1. Exhaust gas recirculation (EGR) : This is akin to the familiar recycling concept. A portion of an engine's exhaust gas is recirculated back to the engine cylinders.

2. Selective catalytic reduction (SCR): This is simply the breakdown of polluting exhaust elements into less harmful products through chemical reactions. An additional fluid is usually needed for this.

AdBlue, also known as Diesel Exhaust Fluid (DEF), is the common fluid used in SCR trucks.

BlueTEC X Jargon
'BlueTEC' is simply a marketing name used by the Mercedes Benz manufacturer for engines equipped with mechanisms to meet the set emission standards. As such, a BlueTEC 4 truck complies with Euro 4 emission standards.

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gatoho
#11 Posted : Wednesday, February 19, 2014 3:11:33 AM
Rank: Member


Joined: 1/1/2010
Posts: 511
Location: kandara, Murang'a
I have a 1995 Renault Major lying somewhere in Timboroa after I got fed up maybe time to rethink?
Foresight..
kysse
#12 Posted : Wednesday, February 19, 2014 5:41:44 AM
Rank: Elder


Joined: 1/17/2013
Posts: 4,693
Location: Earth
The 2 businesses I would consider doing in Kenya are: Warehousing and Long distance trucking.

If you are in serious biz of trucking please put your contacts here. Got customers.

Now you mentioned weighbridge. Why should you as a truck driver accept to carry overweight knowing so well that you will not pass the weighbridge?
Isn't the penalty the driver's cost? because he was too greedy to say no to biz?





mkeiy
#13 Posted : Wednesday, February 19, 2014 7:39:58 AM
Rank: Member


Joined: 1/27/2012
Posts: 851
Location: Nairobi
kysse wrote:
The 2 businesses I would consider doing in Kenya are: Warehousing and Long distance trucking.

If you are in serious biz of trucking please put your contacts here. Got customers.

Now you mentioned weighbridge. Why should you as a truck driver accept to carry overweight knowing so well that you will not pass the weighbridge?
Isn't the penalty the driver's cost? because he was too greedy to say no to biz?








I don't think we can blame the driver here. They rely on the owners of the cargo for such disclosures as weight.

If you are honest with your driver before they load,then they can choose whether to load or not.

Most consignees are not that honest coz they know overload would mean more transport cost.
wanyee
#14 Posted : Wednesday, February 19, 2014 8:32:10 AM
Rank: Member


Joined: 7/17/2011
Posts: 627
Location: Mbui-Nzau, Kikumbulyu
Am in the same line of bizness trust me ..this trailers ..no returnsd'oh! ...10k net to Champala ..and lucky if u get a return trip haulage..kusumbuana na broker na ma driver( but i have good drivers) better off getting 2 x 4 fighters for short haul distance they make more trips per month & less nonsense of weigh bridges
Outvestor
#15 Posted : Wednesday, February 19, 2014 8:46:30 AM
Rank: Member


Joined: 8/8/2009
Posts: 171
kysse wrote:

If you are in serious biz of trucking please put your contacts here. Got customers.


vestor.out@gmail.com
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Prime
#16 Posted : Wednesday, February 19, 2014 9:01:42 AM
Rank: Member


Joined: 2/27/2011
Posts: 518
[quote=gatoho]I have a 1995 Renault Major lying somewhere in Timboroa after I got fed up maybe time to rethink?[/

Gatoho what happened? What got you fed up?
Mkimwa
#17 Posted : Wednesday, February 19, 2014 12:50:28 PM
Rank: Member


Joined: 10/26/2008
Posts: 380
kysse wrote:
The 2 businesses I would consider doing in Kenya are: Warehousing and Long distance trucking.

If you are in serious biz of trucking please put your contacts here. Got customers.


nditika@gmail.com. Lets talk biashara.

As for overloading, its usually the truck owners rather than the truck driver. In some cases, there are customers who don't say the weight of the load, but then, there are private weighbridges you can go to and check the weight even after loading. If overloaded - then raise it with client at that point and agree on modalities.

In my experience, most truck drivers/owners know the weight of the goods. They are willing to overload and make more money, and deal with weighbridges issues.

For my business, I don't carry overload at any one point. The lesson was learnt early enough (not via own experience), and I say no to anything that is overweight. And I have never had issue with weighbridge.
Mkimwa
#18 Posted : Wednesday, February 19, 2014 12:59:34 PM
Rank: Member


Joined: 10/26/2008
Posts: 380
wanyee wrote:
Am in the same line of bizness trust me ..this trailers ..no returnsd'oh! ...10k net to Champala ..and lucky if u get a return trip haulage..kusumbuana na broker na ma driver( but i have good drivers) better off getting 2 x 4 fighters for short haul distance they make more trips per month & less nonsense of weigh bridges


can you share more info on the short haul business..
XSK
#19 Posted : Wednesday, February 19, 2014 1:30:08 PM
Rank: Veteran


Joined: 12/8/2009
Posts: 972
Location: Nairobi
Mkimwa wrote:
wanyee wrote:
Am in the same line of bizness trust me ..this trailers ..no returnsd'oh! ...10k net to Champala ..and lucky if u get a return trip haulage..kusumbuana na broker na ma driver( but i have good drivers) better off getting 2 x 4 fighters for short haul distance they make more trips per month & less nonsense of weigh bridges


can you share more info on the short haul business..


+1
You will know that you have arrived when money and time are not mutually exclusive "events" in you life!
wanyee
#20 Posted : Wednesday, February 19, 2014 1:45:24 PM
Rank: Member


Joined: 7/17/2011
Posts: 627
Location: Mbui-Nzau, Kikumbulyu
XSK wrote:
Mkimwa wrote:
wanyee wrote:
Am in the same line of bizness trust me ..this trailers ..no returnsd'oh! ...10k net to Champala ..and lucky if u get a return trip haulage..kusumbuana na broker na ma driver( but i have good drivers) better off getting 2 x 4 fighters for short haul distance they make more trips per month & less nonsense of weigh bridges


can you share more info on the short haul business..


+1

You need to get in touch with brokers ..they are the ones who give you contracts and contacts..if you have a fleet of 4 ..add 3 with asset financing ..a total of 8 or 7 ..you are set ..you will get good biz..not divulging more:, any1 in this biz knows where them brokers@ smile sawasmile smile
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