Mail delivery has been negatively affected by alternate forms of communication, such as e-mail and the Internet. At the same time, the business is benefitting from an increase in the volume of internet shopping, which has seen greater demand for parcel deliveries. For this reason, the Managing Director, Swift Courier, Mr Toyin Olufade, said there are opportunities for Nigerians to invest in the sector and make money. Opportunities, he said, are in freight delivery, serving local, regional, national markets.
Domestic freight delivery service providers, he noted, provide air freight delivery options, and operate ground freight trucking services. Local firms, Olufade, who is also the President, Nigerian Courier Operators Association, added can offer port-to-port delivery, including freight packaging services. The strategy is offering premium services, where – delivery is made in less than 24 hours. He said local companies don’t need to focus on international routes as such lanes would need deep pockets, which only global logistics companies can afford. He said the success of couriers depend to a large extent on fleets of vehicles and equipment, ranging from simple trucks to other forms of cargo transportation. Olufade said service quality is becoming increasingly important.
On-time pickup and delivery, speedy customs clearance, in-transition traceability, parcel safety, and 24-hour accessibility are important elements in overall service quality for shippers. However, the constant business shake-outs create a climate of vulnerability for potential entrants. But Olufade said his association is working to address this.
The Group Managing Director, Bowill Group of Companies and Secretary General, Nigerian Courier Operators Association, Mr Siyanbola Oladapo said his association expect the service quality of local players to improve, which will allow them to challenge the large integrators for market share.
He said there are huge opportunities for entrepreneurs in courier and freight delivery. He said they are determined to assist local operators break down barriers that prevent them from reaching their high-impact potential. To this end, he said the association has scheduled a public lecture and award ceremony, which will be held on Tuesday, September 25,2012. Start-up costs for a freight delivery company vary widely, but can be quite expensive. Depending on type of freight delivery, costs may include business facility leasing, office furniture, computers and printers, commercial vehicle purchases, freight hauling equipment, freight and packaging supplies, labour and insurance costs. Most Nigerians on errands service use a vehicle and communication equipment such as a mobile phone to operate. A critical mass in the industry own about five to 10 vehicles. For participants to expand beyond this point, a significant investment in technology and radio equipment is necessary. The banking industry, which has been the mainstay of the express document business, saw stagnation in shipments in the past two to three years. However, the document business from banks is expected to grow in line with anticipated bank expansions. Given that usage is now primarily for original documents, a shift to electronic media is not expected. Oladapo said local operators should focus more on high-margin industries and customer segments and put into practice more flexible pricing strategies.
