Transportation Business plan
With Africa’s largest economy and its biggest population, Nigeria’s growth potential has been widely reported; however, long-term bottlenecks have prevented the country from realizing that potential.
The transport sector has been identified over the years as one of those bottlenecks. As a result of decades of poor maintenance and underinvestment in new capacity, the sector is marked by congestion, inefficiency and high overheads.
Therefore, transport infrastructure and the logistics sector were identified as key elements of the March 2017 Economic Growth and Recovery Plan (EGRP) – President Muhammadu Buhari’s strategy for the country’s post-recession development. Indeed, there have been ongoing calls for significant capital spending in Nigeria.
A 2014 study by consultancy firm McKinsey estimated that Nigeria would need to invest $839bn into infrastructure by 2030 to allow the economy to realise its full potential, with the bulk of this investment required in transport and power systems. The study, which based its analysis on the expectation that a series of ambitious and efficient projects would be rolled out in the coming decades, noted that the nation’s infrastructure requirements were heavily dependent on economic growth and the ability to successfully execute planned projects.
Officials have stated that public sector spending alone cannot address all of the challenges facing the sector, however, leading to a shift towards improving the business environment in order to attract new private investment in rolling stock, infrastructure and facility management.
The proposed reforms include an end to state monopolies, the privatization or concession of assets to operators, and the establishment of independent technical and economic regulators. While these proposed legal reforms have long been on the table, 2017 could see progress on the matter.
The need for improved transport infrastructure and processes in Nigeria has been well documented, with roads in the main commercial hub, Lagos, often suffering from significant traffic delays. Congestion issues on the city’s roads are in part a reflection of the lack of alternative passenger and freight transport options, particularly in terms of rail transport. Nigeria’s road network accounts for 90% of the transport sector’s contribution to GDP, with the network itself in need of improvement.
With the influx of new firms springing up in Lagos every day, the need to move their workers efficiently and in a classic way is prevalent. Firms are already using this means to move their firm saving the need to provide transportation services themselves yet meeting the need to move their staff in an efficient and classic way.
Table of content
Executive Summary 3
Business Description 9
Products and Services 9
Competitive Advantage 12
Market Research 15
Competitor Analysis 15
Sales and Marketing Plan 16
Operational Plan 17
Business Risk 20
Management and Structure 20
Financial Plan and Projections 21
PATILAD Transportation Company aka PATILAD will begin operations this year and provide transportation services covering various transportation packages to Nigerians. An opportunity for success exists because the national transportation industry is growing at an estimated 4% annually. This is due to the rural-urban migration that is sweeping through the entire country.
PATILAD is researching the market to identify potential opportunities for future sales in this rapidly changing environment. PATILAD’s long-term goal is to establish itself as an internationally recognized provider of top-of-the-line transportation services.
The company has discovered a major supply gap in the Lagos transportation system with lots of persons not been able to get to their destination in due time especially in the early morning and evening into late evening rush hour. Due to it, we are providing modern and executive coaster buses to serve several organizations that will love to provide corporate transportation services to their staff members.
To carry out this, we have conducted a survey to identify several companies within the same geographical location, basically on the island with staff coming from as far as Ikorodu, Agege, Mowe (in Ogun State) to mention a few. At present, we have identified more than 15 companies with staff strength within the range of5-20 that are willing to access our services. This allows us to capture a 10% market share of the companies within the Lagos island geographical zone. Upon the approval of initial funding for the company, we plan to formalize the business relationship with these companies and beginning servicing their transportation need. Sourcing will be continuously evaluated.
PATILAD will take advantage of trade shows, transportation industry publications, and other sources of industry-related information to monitor the quality of its offering.
PATILAD will start as a small organization and its employees will share in management duties and decision making. It will be important for each member of the team to be capable in all aspects of the business. Prerequisites for all PATILAD employees include at least five years of transportation industry experience, knowledge and ability in the types of activities PATILAD will promote.