Shal Trans Logica

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Start-up Summary

The start-up costs will include some of the basic set-up costs for the SHAL Logica – office stationery (business cards and letterhead), rental for the office and a large adjacent parking lot for three month's rent and one month's security at €4,000 per month, and computers and accessories. Marketing expenses include brochures and website development .Other expenses include legal consultation fees to ensure that all precautions are taken to limit the risk of the business, insurance premiums for the first year of operation to cover liability associated with the service, the trucks, the office, and permits for the business. These include Fuel Tax Reporting, Road Tax, Global Tax and toll gates passes. Other current assets include software for accounting, scheduling, and resource management and lightening. Long-term assets will be three new 18-wheelers truck, estimated at €150,000 each. We will buy brand new trucks for efficiency and on time deliveries and to beat our local competitors who buy used trucks. €75,000 is budgeted for three forklifts at €25,000 each. An additional €25,000 is budgeted for other assets including repair equipment and tools which it is cost-effective to own in-house, satellite-tracking equipment for each truck, and office furniture.

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Mission statement and vision statement

The Mission of the company is to dominate the domestic market in the first year establishing best customer support than any competitor. The vision of SHAL Logica is to expand its services covering the whole cemac zone providing uniqueness and sophisticated trucks and technology with gross profit of 55% in the third year.

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Products and Services

SHAL Logica will offer the following services for businesses in the Cameroon and Cemac Zone Countries:

- Pick-up and delivery of goods with a minimum per-delivery weight of 15,000 lbs from and to locations in its geographic range by their 18-wheeler trucks

- Both "less than a truck load" and "truck load" services

- Online tracking information, location of all GPS-tagged truck, the status of deliveries and expected arrival times for pick-up or delivery

- Phone support for all customer questions, delivery changes, and scheduling.

- online accounts, regular schedules of delivery, or linking of client order information directly to our Database

To maintain competitiveness in our core services, we will not offer

- warehousing and storage of goods awaiting delivery (goods can remain in storage in trucks for short periods, but at relatively high cost to customers)

- Packaging and crating

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Company ownership/Legal Entity

Partnership between on the third year we go public.

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Current Status

Project under development.

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Basic Corporate Information

1.6 Company structure

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2. Industry Analysis

2.1 Industry Definition

In March 2006, the CEMAC member states adopted a Trade and Transport Facilitation Program comprising the following which promote intra African trade, regional integration and economic growth.

2.2 Industry size, sales and sales projections

With the fast growth of GDP in the CEMAC zone and with, demand for cargo services across most industry sectors tend to increase therefore making the market more concentrated. The logistics in Central Africa industry size is not as big as in the Western world and developing countries such as China but due to recently increase in trade with China at has been improving.

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2.3 Industry characteristics

Intra-regional trade among the six countries is still less than 5 percent of the total trade in the region at the moment.

This is primarily due to the dominance of oil, and forestry, mineral and agricultural commodities in all countries’ trade mix, as well as the similarity in production structure of goods and services in the region. Furthermore, the current inefficient transit system which hinders regional integration, and the poor condition of road, and to a lesser extent rail infrastructure, keep the share of intra regional trade to a very low level.

In central Africa compared to industrialized countries the safety and inventory holding costs are higher as maximization of profits is balanced

2.4 Industry trends

Companies tend to cut costs in order to gain more profits. The profit margin of transportation operators in central Africa is high because they set the prices due to lack of competition to a certain extent.

Cheap trucks are normally used to cut costs as b

Technology advances

Inventory management and value added services such as track and trace, packaging are essential in logistic companies operating in central africa. As communication and technology increases in the cemac zone the logistics industry experiences an integrated network which allows industries to collaborate in a better way.

Most firms operating in this market keep cost low by purchasing used trucks cheaply, keeping maintenance limited and maximizing profits by overloading. This reflects the lack of technology in terms of on the road transportation methods as firms struggle to buy new high tech trucks which are fleet and drop side trailers to provide maximum flexibility. Border management modernization introduces document linkage to computerization in order to strengthen inventory control and to reduce lead time as products can take too long in border patrol inspections.

Tracking systems is helping a few innovate companies