In a significant move towards economic rationalization and improved transport infrastructure, Uganda has launched a groundbreaking water transport project on Lake Victoria.
This initiative, supported by Equity Bank, aims to alleviate the inefficiencies of road transport and enhance the country’s fuel logistics through a modern, safe, and environmentally friendly approach.
Speaking during the launch on Thursday Gertrude Karugaba Wamala the Chief Legal Officer of Equity Group who represented Group CEO Dr James Mwangi noted that Equity exists to transform lives, give dignity, and expand opportunities for wealth creation.
In the pursuit of its purpose and in line with its vision to be the champion of the socio-economic prosperity of the people of Africa, Equity partners developmental entities such as Mahathi Infra Uganda Limited, to implement projects that deliver value at the macro and micro levels while enhancing the competitiveness of the countries in which we operate.
“Your Excellency, Equity Bank’s participation in this project is both substantial and strategic. Our journey with Lake Victoria Logistics started 5 years ago, and we have since provided credit facilities through Equity Bank Uganda that have enabled what we see here today,” she said.
According to Karugaba, Equity Bank’s financing has covered; Petroleum tankage that will ensure the country achieves adequate capacity to store significant quantities of fuel. A state-of-the-art jetty infrastructure extending 256 meters, and Two tanker ships.
“Equity Bank is proudly associated with this project which sits well within two of the core pillars of the Africa Recovery Resilience Plan: logistics, trade, and investment. As a leading provider of integrated financial services in East and Central Africa that is perfectly mapped with the East African Community, we are fully aware of and able to discharge our responsibility to support worthwhile investments that deliver impact in terms of jobs, facilitating trade, connecting countries, and overall supporting ease of doing business. This project and others we have financed in Uganda so far is a testament to this commitment,” she said.
She informed President Yoweri Museveni who was the chief guest that Equity Bank’s substantial investment underscores the bank’s commitment to supporting projects that drive economic growth and development in Uganda. “The Lake Victoria Logistics Project will create jobs, enhance the efficiency of petroleum product transportation, and contribute to our country’s overall economic prosperity.”
President Museveni welcomed the partnership that saw the accomplishment of a wonderful and promising project, he highlighted the project’s significance, stating, “The economy is now bigger, but with some irrationalities, like too many vehicles on the road and slightly higher costs of transport for cargo. By having fuel getting off the roads, you are targeting that rationalization of the economy.”
One of the key concerns addressed by the project is environmental safety. President Museveni reassured the public, saying, “I’m glad the proprietors and also the ministers have assured the country about the zero chance of pollution of petroleum in the freshwater lake. Potential dangers must be ruled out now, in addition to this water transport.”
Gen. Katumba Wamala the Minister of Transport and Work assured the president and the country that the transport tankers have been constructed and they meet international standards with a double hull, which means they are highly safe for transportation of oil on this lake.
Under this project, Mahathi has constructed the jetty for the docking of vessels with that capacity which has a total of 4.5 million litres each and with the capacity to store 70 million.
“And as I already hinted, they are willing to expand that capacity to a bigger capacity and that is a plus for me as a minister who is in charge of transport, our country being landlocked, we have been relying upon and continue to rely heavily on road transport for the transportation of our cargo, including fuel and petroleum products. This road transport comes along with several costs such as high road maintenance costs, and fuel adaptation,” he said.
He added that the project will greatly reduce the high road maintenance costs, traffic congestion on roads and the frequent associated road accidents.”
“It is in this regard that the government of Uganda continues to encourage the private sector to invest in water transport. Therefore, my ministry recognizes the importance of water transport to Uganda and is committed to creating an environment in which the sub-sector can maximize its potential, not only for the benefit of our economy but also for the region,” said Gen Katumba.
Ruth Nankabirwa, Energy minister also added that the project is a significant milestone in Uganda’s energy sector and it is a testament to the country’s commitment to diversifying fuel import routes and promoting economic growth.
“It took over 20 years after liberalization for a company to show serious investment in undertaking the high capital intensive and careful investment in developing a fuel transportation system by ships over Lake Victoria. That’s why my ministry welcomed the proposal from Mahati Infra Uganda Limited to undertake this key project, which leverages, among others, the availability of the Lake Victoria Water Resource and appropriate infrastructure at Kenya Pipeline Company’s Kisumu terminal to facilitate such ventures.”
She added; “I am glad that the company has successfully undertaken the development of a bulk storage terminal and a JT at this place, Bujiri Bukasa, alongside ships for lake transport of petroleum products.”
Meanwhile, according to Board chairman Mahathi Steve Mahinda, the Lake Victoria logistics company aims to revolutionize Uganda’s fuel transportation, moving away from inefficient road transport. Their vision is to establish a sustainable solution that reduces road congestion, streamlines border traffic and lowers the time and cost of transporting fuel from Mombasa.
With two Uganda-made tanker ships operational, each capable of transporting 4.5 million litres on ten trips monthly, their current capacity stands at 90 million litres per month. Plans to expand with two additional ships aim to double this capacity to 180 million litres monthly.
Featuring the largest storage capacity in Uganda and East Africa, the terminal can hold 15 days of national fuel consumption, boasting a loading capacity for 20 trucks and a discharge capability of 7 million litres per shift, all meeting stringent API safety standards.
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