Operators in the haulage industry have lamented that the industry was grappling with soaring operational costs due to bad roads and security challenges.
They stated this during the 2023 Haulage and Logistics Magazine Annual Conference and Exhibition, themed “Managing the Haulage Employer/Contractor Relationship in a Difficult Operating Environment” held in Lagos recently.
According to the haulage operators, these issues not only increase vehicle maintenance expenses but also result in extended travel times, impacting overall operational efficiency.
In his keynote address, the Managing Director of Logistixone Nigeria Limited, Stephen Opayemi, bemoaned the gross underestimation and undervaluation of the haulage services’ impact on the Nigerian economy.
He stressed the direct influence of the volatility in the country’s foreign exchange market and the high expenses associated with diesel on the industry.
He said, “This sector has been a crucial driver of economies, but unfortunately, in Nigeria, it finds itself among the most negatively affected and least resilient industries, especially in the face of economic challenges.”
Opayemi expressed concern that despite notable growth and investments, the haulage sector faced challenges due to difficult economic and regulatory conditions.
“This has led to rising operating costs, shrinking profits, increased insecurity, infrastructure decay, and an overall sense of uncertainty about the sector’s future,” he added.
On his part, the convener of Haulmace, Mr Alfred Okugbeni, mentioned that the current global economic downturn and conflicts in different parts of the world had created obstacles in global supply chains, resulting in crises related to the cost of living and an increasingly unstable business environment.
However, Okugbeni emphasised the necessity for stakeholders in the haulage and logistics industry to foster increased collaboration to navigate the complexities of the employer/contractor relationship in the face of a challenging operating environment.
On his part, the founder and Chairman of Associated Bus Company Transport Plc, Mr Frank Nneji, highlighted that the government was the main hindrance to the haulage business, emphasising the adverse effects of poor road conditions.
Nneji said, “Investing in a new N100m truck becomes financially precarious, as the vehicle rapidly degrades within 18 months, resembling a dilapidated state due to road quality.
“This not only leads to financial setbacks but also poses a threat to the overall viability of haulage operations. The urgent call for government’s intervention underscores the need for improved infrastructure to safeguard the long-term success of the haulage industry.”
