Looking to start a frac sand hauling business

Discussion in 'Oilfield Trucking Forum' started by AC141, Jul 26, 2017.

  1. AC141

    AC141 Bobtail Member

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    Jul 26, 2017
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    I am looking to start a frac sand hauling business.

    I work for a company that has made various investments in the oil and gas world and have been asked to spearhead this idea for the group.

    I do not know really anything, I am looking to call/email someone to get more information. Please send me a PM with your email/phone number (as I don't enough posts to reply) and I will contact you shortly.

    Thank you for your help. I'm just an intern looking to do well on a project!

    Adam
     
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  3. -Ace-

    -Ace- Bobtail Member

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    Dec 14, 2012
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    The frac hauling industry is covered up with trucks that can't get enough loads as it is, it's not a very enticing market right now.
     
    rabbiporkchop Thanks this.
  4. chalupa

    chalupa Road Train Member

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    Indeed it is....trucking is a loss leader anyway. In accounting 101 its a cost center not a profit center.

    Break over points or ROI are typically very high because of the high capex to get off the ground. This is how brokers and mega carriers survive . By pennies on volume or no capex.

    If I was an investor and wanted oil field returns it would be mineral rights or purchase a working SWD. The returns on both are perpetual and one can sit very comfortable with less than 5 million invested. 2nd choice would be a real estate portfolio of residential renters convertible to tote the notes. Get quality renters in with a caveat of owner financing in 24 mos. Very doable.

    JMO
     
    rabbiporkchop Thanks this.
  5. raybonent

    raybonent Bobtail Member

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    Apr 21, 2014
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    Hi,

    I am responding to an old post BUT I started a frac sand business in 2014. Terrible timing but we were getting paid. I approached it differently. I did not own a truck. My research showed the trucks were 1. expensive to non CDL owners 2. repairs, repairs, repairs 3. Expensive to repair-captial needed.
    I owned 2 Gardner Denver blowers ($15k each) and pneumatic trailers (leases).
    I partnered with 2 Owner/Oper that wanted entry into Frac but didn't have the capital for blowers, the pneumatic trailer leases nor the contracts that paid.

    CONS: Yes, this type of model could've worked if the following had happened:
    a. My Owners/oper trucks didn't keep breaking down and they did not have the small capital for repairs
    b. Trust. I had a $15,000 blower on a truck without a GPS tracking system. Yikes
    c. Trust. I had a $60,000 pneumatic trailer on a Truck that I did not own. Possession in Texas is ?? % of the law.

    PROS:
    a. I was successful until the market droped. Oil dropped from $120 to $50 in months
    b. The capital entry was cut due to the fact that I did not own the truck.
    If I did it again I would Lease the truck, own the blower and do a month to month lease on the trailer.
    I would have GPS tracking on everything...including the driver.
    Currently my Friends contract in Texas is $1600 per day with a 50 mile distance. Not bad
     
  6. ZVar

    ZVar Road Train Member

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    Flint, MI
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    And the sad thing is, there are drivers out there that will allow this....
     
  7. PandaPancake

    PandaPancake Light Load Member

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    Dec 23, 2017
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    Helpful. Don't you have some conspiracy to discuss somewhere else?
     
  8. Reginachavarria

    Reginachavarria Bobtail Member

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    Feb 6, 2018
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    Hi, You said your friend's contact is for $1600 a day? Do you mind sharing the name of his company?
     
  9. rookietrucker

    rookietrucker Trucker Forum STAFF Staff Member

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    It can be a expensive venture, if you have not been in the business for a few years.

    I have the same question as the last person who posted. What trucking company are they hauling for ?

    I have heard, some frac companies in Texas are on a day rate. Just don't know who they are. You can send me a PM with the name of the trucking company. Click on my avatar and start a conversation. Thanks :)
     
  10. dru500a

    dru500a Bobtail Member

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    Mar 17, 2018
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    AC141, I know this is a long shot but if you'e still around, how did things turn out?
     
  11. DOT Logistics

    DOT Logistics Bobtail Member

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    Oct 17, 2018
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    Raybonent Im planing on starting a frac sand business, I own the equipments and would like to put them to work as an independent carrier. Any word of advice?? Where do I get the contracts from??? I'll appreciate any information.
    Best regards
     
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