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Uganda’s multibillion private fuel storage terminal nears completion

Uganda’s strategic fuel storage terminal will be ready by 2020. (PHOTO/Courtesy)

KAMPALA —The construction of the magnificent multibillion fuel storage and transport project is now at 70% completion, officials have said.

Capt Mike Mukula, the chairman and one of the shareholders of Mahathi Infra Uganda Limited, an Engineering, Procurement & Construction (EPC) Company contracted to construct the fuel storage terminal and Lake Victoria fuel transport system said that the project President Museveni launched recently is now at 70%.

“This project will be a game changer of the country because we shall be able to transport fuels on Lake Victoria from Kisumu, Kenya to Kampala using Oil Tanker ships,” he said adding that “this [project] will reduce the cost of fuel and its transportation by over 50%.

Capt Mukula added that tanks are complete, while the jetties and ships near completion.

With a 10 nautical miles speed, the 220m long jetty at Bugiri-Bukasa is estimated to deliver fuel in 16hours upon completion.

He explained that this 14 tank storage project will store up to 70m litres of fuel making it one of the largest fuel terminals in East and Central Africa.

With a 10 nautical miles speed, the 220m long jetty at Bugiri-Bukasa is estimated to deliver fuel in 16hours.

Presently, Petroleum products like Diesel, Gasoline, Kerosene and Jet A1 are transported by road making it costly, susceptible to adulteration, accidents and uncertain supplies.

Through Lake Victoria which is the biggest water resource in Uganda, this fuel terminal will ease transportation of fuel from Kampala to Kisumu considering that Kenya Pipeline Company has a fuel terminal at Kisumu on Lake Victoria.

According to Mr. Mukula, this project will also store fuels and loadtrucks for supplying in Uganda and to neighboring countries and that it is expected to kick off mid next year as Uganda finalises preparation for its first oil production.

The project is also expected to provide both direct and indirect employment Ugandans and Kenyans and ensure reliability in supplies.

Uganda has always suffered a shortage in strategic oil tank reserves and it is projected that this $270m investment will address this challenge as one ship will be able to carry about 200 trailers.

Kenya’s President Uhuru Kenyatta has been very pivotal in rebuilding Kisumu port and it is not a coincidence that the Bugiri-Bukasa fuel terminal will contain a pipeline from Mombasa to Kisumu.

Mahathi Infra a firm established for execution of projects, primarily in Oil and Gas sector has successfully executed projects in Mozambique, India, Liberia and Kenya with an excellent working experience in Africa.

In March 2016, Mr. Museveni held a meeting with Mahathi Infra Services Pvt Ltd directors led by Ravi Sankar Yandapalli, Kalyan Swaroop and Mike Mukula at State House, Nakasero where they discussed issues pertaining to the proposed development of fuel transportation from Kenya to Uganda through Lake Victoria.

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