Starting a Frac Sand Hauling Business

Hi
We're looking into Frac sand hauling here in PA and
NY state when new drilling opens up. We are actually a trade
show logistics company ,and we also run flatbed ,and haul construction
demolition in a new Titan walking floor upstate NY(That's what I do most of the year).I run the walking floor and some of the flatbed
End of the business for the company.I live in Northeast PA and have been watching the boom in the gas drilling in PA in the last few years
and the owner of the company is interested in getting involved in it. We also have a couple of tri-axle dump trucks mostly sitting .Having talked to a lot of people ,and researched rates and different types of trucking
involved,we are leaning towards hauling Frac sand. I see the vacuum water tankers (tractor trailer) sitting a fair amount ,and it seems like the tri axle vacuum trucks (straight trucks) work more ,but a new one is $180k and it seems there is a lot of companies involved already and what I am told it has affected the rates and work available,and there is a possibility of the industry turning to using propane to Frac in the
future due to the political and environmental issues concerning using
Millions of gallons of water per well and the toxic chemicals used.This
is the big issue holding up the drilling in NY state. It looks like the Frac
sand hauling is the end of the business we will be getting into. It seems
no matter what the use to Frac they still need the sand or synthetic propant to inject into the fractures in the shale so the gas will flow.
I have talked to a couple of companies and the pay structure per load and Demurrage (waiting time pay) seem to make it a good paying situation (for now,I have heard Schneider is gearing up to enter the
Business,and some gas companies are going to be buying their own trucks) .This will I am sure will hurt the rates ,but with the massive amount of work projected over the next 20 years especially when NY starts and more states start drilling the trucks will spread out more
and the rates hopefully will be decent.The major problem now is the
major shortage of Bulk tankers.Most manufacturers are backordered
a year or two with some having 140 trailers on backorder.
Used trailers are scarce and commanding top dollar if you can find
one.I see People selling late 70's and 80's trailers for $30k to $40k .
God Bless them ,supply and demand ! I have a friend starting next month and he is leasing a trailer for $2500 a month and
paying $7000 to have a blower installed on his truck. But his projections
of $50k a month in revenue (until some big national players kill
the current rate to saturate the market) make it worthwhile. My. company is currently looking for a trailer or two and has the means
to buy new if any were available.They also just bought me a new 2012 heavy hauler KW W900 ,550 cummins,46k rears,full lockers,leather interior for my current work (I currently drive a 2007 379 Pete ,475 Cat,46k rears). We run 102k gross with a over weight permit in NY state when hauling C&D ,and the day cabs are easier when I have to go into NYC and work the trade shows,especially backing van trailers in on the blind side off of 54st packed with cars into an underground. Loading dock.The owner realizes he will have to put a sleeper on the new W900
when we start hauling Frac sand ,since a sleeper is mandatory to get hired due to the hours and nature of the work.Anyone here
hauling Frac sand in PA here and have any insight you would like to share ? I have thought about going back to being an O/O
I have owned trucks before,but have been with my current company
for 11 years,and they pay me good ($27hr )treat me great ,let me run my own show,and the owner treats me like a partner more than an employee,but a partner
who does not have to make payments,fuel,repairs ,insurance,
etc and my paycheck is always there ,while he is always having to chase money. But in return he gets an employee with a clean license,25 years
Driving experience,who works on his truck in my shop(small repairs and maintenance ),washes the truck daily. I also own 2 service trucks equipped with air compressors,welders,tools etc. and takes care of all the day to day problems for him.For him that is priceless and it works for both of us.

Sorry about the long winded post!

Anyone want to chime in about hauling Frac Sand?

 

Hi
The rates are a mixture of per load and waiting time. I was told
By the company involved the trucks are averaging $12k a week
with the majority of the revenue being waiting time. I spoke to
a driver the other day who t

 

The driver told me he recently had to wait 52 hours on the well
site before unloading.You don't get paid for the first 2 hours,but
get paid for every hour after that.I was told there are a fair amount
of trucks in PA from Texas due to the drought in Texas that has slowed the
drilling down somewhat there.