Will transportation business do well this year(2022)

[funmi]

Transport is said to be one of the profitable businesses we have in Nigeria. Without arguing about this, we know people must move from one place to another. And goods and services also moves from one place to another like inter - States or intra - States movement. This few reasons and many more are the reasons why transportation business is very good.

But during this festive season I noticed that public transporters complained a lot about the low turn out of people's movement which is very unusual. During festive period is when many people usually travel from one place to another. In fact, the cost of transportation is usually very at the high side during this period. Which makes drivers to make a lot of money during this period. They normally make super normal profits too.

Although, unlike the other year's December period when we used to experience fuel scarcity, there is no fuel scarcity as it used to be during Christmas and new year periods. Which is one of the excuses transporters gives when ever they increase the transport fare.
Now, to my question, will transport business do well for transporters this year? Due to the negative omen they saw during December period, will they will make it this year? Hope this trend of low turn out will not continue to affect this business through out this year?
I will like to know your views about this topic. Thanks.

 

[Alexandoy]

In this pandemic era the transportation industry is greatly affect negatively. It is due to the protocols against covid that is hurting the industry because the capacity of riders or passengers is limited. Now that the alert level here is increased to #3 the buses can only have 50% of their capacity. With planes and boats, that same maximum capacity would apply. There are many bus companies here that have trimmed to 50% their operating buses. It is not good to run at a loss, they said. There is the maintenance and the pay of the driver and conductor that is hard to achieve when the revenue is not normal. I commiserate with the bus companies because I know the big expense that they are going through right now.

For those planning a transportation business, the advice is to wait until the pandemic era ends before you make plans. The transportation business used to be profitable when it was operating in full capacity. Add to that the standing passengers (in excess of the seating capacity) and you tend to gain a good profit.

 

[Caramelle]

In our country, the demand for public transportation improved during the holiday season. Due to the easing of restrictions, people were encouraged to go out and to visit malls and other tourist spots. Christmas is still a festive season despite the pandemic as this is also the time when employees receive their yearly bonuses. There were traffic jams in many places as a result of the holiday rush. However, people are still cautious. Many companies are still on a hybrid or work-from-home arrangement and this will likely remain for the next year or so. Thus, there is an oversupply of public transportation vehicles at the moment. Some van owners who cannot ply their route have resorted to providing transport services to companies. The relentless fuel increases are compounding the challenges of the transportation industry. I would think twice about starting a transportation business while covid is still raging.​

 

[btaliat]

Transportation is no doubt one of the offline businesses that can guarantee your returns within your six months of starting it because of its high demand. I won't make mistake of putting into consideration. It is not rrdkky like this in the developed countries where the citizens have st least access to car loans. In the underdeveloped countries, majority of the people don't have private vehicles which make them to be easily preyed on by the transporters. Most time especially, during the fertive periods, it is believed that the transporters do hike the price of their fare owing to the fact that they know people don't really have a choice.

 

[Good luck]

Transportation is a very good and lucrative business that can make someone to quickly rise if the person know how to run it successfully.Transportation should do well if government do not increase the fuel or gas used.A lot people may not be able to cope with the hike in price of fuel which may seriously affect the transporter because customer may not be much.

 

[Mellorando]

I definitely agree with you the transportation industry is definitely one of the fastest growing industry and for this year 2018 studies has it that, the global transportation industry is expected to grow at a rate of 3.4% through 2027. Although this is a positive outlook, growth in this sector is much less robust than pre-pandemic levels when predicted growth was close to 20%. There are numerous transportation services that are profitable, these services are based on interest, requirements, manpower and your know-how in the business and industry. There are numerous opportunities in this sector depending on the city or town.
The future of transportation involves moving into new, smarter sources of energy, modes of transport and physical and technological infrastructure to support these transportation innovations. Three common themes in transportation innovation are: smart technology. electrification.

Below are three changes that are sure to happen these 2022:


1. Transportation digitization
Increasingly, companies are interested in the data showing how their drivers are doing. They want to know that people are safe and keep track of where they are. That interest is motivating companies to collect, analyze, and apply more telematics information from sensors within vehicles. The issue is that companies can have vehicles from more than one manufacturer, which means they have multiple data sets they need to extract and compare. This is leading to more digitization that allows the companies to connect vehicles into a single system. Digitization also connects to the broader use of autonomous vehicles. Although we’re not quite ready for pilot programs using the everyday cars most people drive, there will be an increase in those programs for mid-mile transportation, such as shuttles. Those will happen in large transportation corridors. With this push, companies will have to face major concerns related to autonomous vehicles, including how they’re going to be regulated and insured.

2. Supply chain disruption:
Due to both the global energy crisis and COVID-19, there’s currently a shortage of silicon. Manufacturers use silicon to make not only the microchips in most vehicles but also other components like gaskets and sealants. So, manufacturers are struggling to build enough vehicles to meet demand. Customers are paying more and have fewer choices when they go to buy. Because the reasons behind the shortage are not easy to resolve quickly, the transportation industry will likely have to deal with supply chain disruption well into the coming year.

3. Increased focus on sustainable transportation:
Over the past several years, increases in fires, storms, and other events have brought the climate crisis into greater light. As a result, shareholders of major companies are demanding that companies disclose climate risks and take on more responsibility for the influence they have on the environment. Investors and private equity firms are also asking companies what they plan to do to take care of the planet. Consumers are prioritizing sustainability and don’t want to be associated with environmentally irresponsible brands. Because companies are feeling this pressure from multiple directions, they’re going to focus more on environmental, social, and governance (ESG) standards. Within that, electric vehicles (EVs) are going to be a bigger part of companies’ overall ESG strategies.