Road Transport of Fuel/Petroleum products is a lucrative and sustainable business in Tanzania and Africa that they need some knowledge and strategic planning to start, operate and maintain.
Here’s sample road transport of Fuel/Petroleum products business plan that can be used to raise capital, write concept notes, and write proposals. And also can be used as a guideline to write your business plan on your own without hiring an expensive consultant to do it for you.
ARA Transport is an indigenous energy, logistics and transportation service company duly registered and it has obtained a license to transport petroleum products across the country as well as to transit petroleum products to the landlocked neighboring countries (Malawi, Zambia, Uganda, Burundi, Rwanda and DR Congo).
The company is formed following the increasing demand of petroleum products (example, premium motor spirit, diesel, kerosene, and other petroleum products) in Tanzania, East Africa and Central Africa. The company primarily focuses on transporting petroleum products from oil depots to the desired destination across the country and to landlocked neighboring countries in East and Central Africa including Burundi, Rwanda, DR Congo, Zambia, Malawi, Uganda and Kenya.
The company has drivers who are helpful, courteous and fully trained to handle hazardous materials. They have licenses so there will be no need for company’s training. Our trucks will be clean, well-maintained and inspected regularly for safety and comfort.
At ARA Transport, our philosophy is one that emphasizes service in the real sense of the word and the realization that effective communication is a key factor in our business. The company also realizes that in this competitive market, flexibility and professionalism maintain that leading edge.
The biggest strength of ARA Transport is its personnel since experienced and trained drivers who can take care of transportation of petroleum products from depots are the heart of this business.
The company’s mission is to provide reliable, timely and safe logistics services in the downstream sub-sector of the oil and gas industry.
To become the leading energy logistics service company in its area of operation by offering services with superior customer value.
To be a reliable partner and act proactively to fulfill all the needs of its customers by delivering tailored petroleum products logistics services.
Objectives of the Company
- To expand fleet of trucks/fuel tankers in the next three years. This will enable us to increase the number of customers we serve.
- To develop enough cash flow to pay all salaries as well as grow the business.
- To increase the number of clients served by 20% per year through superior services.
ARA Transport provides transportation services for businesses, the government, oil marketing companies and petroleum transportation companies looking to haul petroleum products to their desired destinations.
Road Transport of Petroleum Products: ARA Transport is engaged in the road transport of petroleum products from the oil depots to the desired destination across the country. The company transports all petroleum products such as: AGO (Automotive Gas Oil – Diesel), PMS (Premium Motor Spirit – Petrol), IK (Illuminated Kerosene), Jet – A1, HFO (Heavy Fuel Oil), IDO (Industrial Diesel Oil) etc.
Keys to Success
Human Resources: We believe that drivers are the life (blood and oxygen) of logistics and transportation business. Your drivers can make or mar your transportation business, so recruitment will be a top company priority. We will make sure that drivers are licensed and well-trained to drive fuel/petroleum tankers/trucks.
Maintenance: Our research has shown that most of the haulage and logistic companies do not carry out a regular maintenance of their vehicles. They do maintenance when their truck breaks down. AT ARA Transport, we shall promote the life span of our truck by ensuring and putting in place systematic maintenance routines. As our business grows and more trucks are bought, we will hire an in-house mechanic to handle maintenance and repairs.
Competitive Rates: We will provide competitive rates to our customers because we have low cost inputs. Our research shows that, you can attract buyers even if your price is below US $5.
Package Handling: By taking regular maintenance of our truck, we will ensure that there is no leakage of fuel and deliver the exact volume of petroleum products to our customers.
Business Ownership and Structure
Promoter: Khalid Magombeka is passionate about the oil and gas industry and the logistic and transpiration business. For the first three years of operation, Khalid will handle many responsibilities as Managing Director/Truck Supervisors/Accountant and Head of Marketing. Khalid Magombeka, the company owner and managing director will make all executive decision. At this moment, he will also be responsible in marketing activities and generating business leads.
After three years of operation, the company will be in the expansion stage and will recruit people to handle these responsibilities.
Marketing and Sale Manager: Once the company acquires new trucks, a sales manager will be hired to solicit new business. This will also allow Mr. Khalid Magombeka more time to dedicate to company management.
Accountant. We plan to hire an accountant to handle financial report and ensure company compliance with tax regulation across the country.
Business Advisor: Said Saleem has spent over 10 years in the downstream sub-sector of the oil and gas industry in Tanzania. He owns five petrol stations in Dar es Salaam and he’s also the managing director of Saleem Transport Limited which transports petroleum products in Tanzania and neighboring countries including Rwanda, Burundi Congo DRC etc.
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In the full version, you will have access to the following table of contents:
Objectives of the Company.
Keys to Success.
Business Ownership and Structure.
Transporting Costs of Petroleum Products.
Customer Segment (Targeted Customers)
Start Up Funding.
Risks for fuel Transporting Business.
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