Logistics experts hinge haulage business growth on good road network


July 11, 2018 | 11:39 am
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Logistics experts hinge haulage business growth on good road network

Worried by the deplorable state of road network across the country, logistics experts have called on the Federal Government to upgrade the state of the roads by repairing the bad portions of the roads.

According to them, following the underdeveloped state of Nigerian rail network and inland waterways as an alternative means of transportation in Nigeria, movement of cargo and passengers depend on road as the major means of transportation.

However, the state of the nation road network has continued to be a huge obstacle to the growth of haulage business in Nigeria.

Adewale Adetayo, general manager, SIFAX Haulage & Logistics Limited, urged the Federal Government to fix the major dilapidated roads scattered around the country to boost the fortunes of the haulage sector.

According to him, many potential investors in haulage business are scared away because of the risks their investment will be exposed to given the deplorable condition of major highways in the nation.

“The haulage business has a very huge potential but not much attention is paid to it. The sector currently accounts for over N200 billion in turnover with an estimated growth rate of 10 percent per annum,” he said.

Continuing, he added: “Nigeria ranks 90 out of 160 countries in the Logistics Performance Index and this is very poor. One of the major challenges confronting the sector is that of bad road. If you consider the road landscape in Nigeria, the Federal Government has about 18 percent of the road network, state government holds 16 percent and the local governments, 68 percent. The sad thing is that more than 70 percent of the traffic on the road is basically on the Federal roads.”

Adetayo said that the sector will experience a quantum leap in growth and investment, if the federal roads can be fixed.

Proper implementation of the Ease of Doing Business, Adetayo added, will encourage more local and foreign investment in the sector. “A good number of the trucks plying the country’s roads are rickety in nature, thereby putting the lives of other road users and goods at risk.

In his view, Emma Nwabunwanne, a Lagos-based importer, who acknowledged that the poor condition of many Nigeria roads, confirmed that this affected the movement of cargoes from the ports to the importers warehouses.

Nwabunwanne however, called on the Federal Government to perfect plans and upgrade the condition of the roads in order to help importers in the movement of their goods especially in the areas of transport cost reduction and safety of goods on transit.

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July 11, 2018 | 11:39 am
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