Logistic don’t only kill agricultural trading/exporting business by high cost only but also it’s readily availability. Traders are now adopting to high cost of moving their goods either from the north to the south or either way but the problem of availability still remain unsolved.
With high number of trucks on Nigeria high ways one still wonder why it will take so much time to move goods from Osogbo in osun state to Lagos. But recently, I discovered that high number of trucks does not translate to its availability.
Unlike in the past, when there were limited agricultural business activities in the country, truck is easily available to pick up goods but now, a lot of business activities round the country had made trucks and semi trucks to be scarce. Recently I discovered that while most of the trucks are planning to leave the north with goods, traders are already booking for their pick up after delivery in the south.
Its time for more investors to look into the rail system and buy concession with Nigerian Railway Corporation to move cargo to up north and down south. My personal ideal is to run a feasibility study for any interested investor on this business idea but what is easily achievable, is to have a cargo terminal build along the rails in different states with small administrative block and warehouse and large space for transloading from the train to the truck either way the business can be partnership venture where Nigeria railway corporation gives you access to se their train twice or 3times in a week. I guess most traders/exporters can subscribe to this services if well planned and executed in more user-friendly and customized to meet client want.
Most big companies had already known the harmful side effect of logistics in business, they have acquire more trucks to help move their cargo from state to state without delay. But small businesses suffer in the hand of truck owners and agent and mostly cause high business over run. Since you are to do delivery 3times in a week and you are still looking for 1 truck for 10days this is harmful to the business for young agropreneur.
I normally advice medium scale start-up that logistics is the most important aspect of agro commodity trading and getting just single truck for your business will really help in term of quick delivery and reduce cost.
Another aspect of logistic problem in Nigeria is the risk of stealing of goods. Recently a well-known company loaded 30tons of cocoa bean seed from cross-river state to Lagos and the goods disappear along the way and till now, the goods, the driver and the truck is nowhere to be found.
Hint* Always get your truck from a reliable source (agent and truck owner) it will help to safe-guard your goods and reduce your worries of un-known.
Over dependent on road to move goods round the country has brought us to this point. Water ways, railways is not functioning. If the government does not look into all this options how will the road network last long?