Lake Victoria Logistics cut fuel transport costs Uganda

Originally founded in May 2015 as Mahathi Infra Uganda, the company aims to transform petroleum logistics for Uganda and other landlocked countries such as Rwanda, Burundi, and the Democratic Republic of Congo, which receive their oil through Uganda.

In 2018, President Museveni laid the foundation stone for the facility, and today, he officially inaugurated it.

During the launch at Bugiri-Bukasa, Kawuku-Entebbe Road, he expressed his gratitude to Lake Victoria Logistics for their investment in Uganda.

“I am very happy about this move. Mahathi, you have helped us. I don't know how much cheaper it is because you didn't give us the figures, but I imagine it is much cheaper than it was. The most important thing is for you to enter the Ugandan market, and once you do, you are talking about the market of DR Congo, South Sudan, Rwanda, Burundi, and so on. This is really a goldmine for investors,” he said.

Lake Victoria Logistics Pulse Live Uganda

President Museveni also highlighted the progressive growth of Uganda's economy due to the National Resistance Movement (NRM) government's strategy.

“People who don't understand the NRM strategy always miss the point. By 1986, Uganda's money economy had collapsed. Therefore, our task was to revive it. When you hear people talking about traffic jams, it means the economy has been revived; you can't have traffic jams if people don't have money to buy cars and fuel,” he explained.

Also read: Fuel prices to stablise as Uganda’s first petroleum shipment docks at Mombasa

He emphasised that with the economy revived, it was time to rationalise it.

“Our transport system at the moment is irrational. We have so much traffic on the roads which is not economic. This project is part of the rationalization effort. By removing fuel from the roads, we are targeting that rationalization. I'm glad the proprietors and Ministers have assured the country that there is zero chance of pollution of petroleum in the freshwater lake,” he said.

The President encouraged investors to develop capacity for other forms of cargo besides fuel.

“I advise you to look for durable areas of investment because the recovery phase of Uganda’s economy is finished. Everything is there, it is now about rationalization. Bring us other investors who can invest in other sectors,” he added.

Launch of Lake Victoria Logistics Pulse Live Uganda

The Minister of Works and Transport, Gen. Katumba Wamala, stated that the project would significantly reduce the cost of transporting fuel in Uganda and the region.

“This effort will greatly reduce high maintenance costs, traffic congestion on our roads, and frequent road accidents. I want to reassure you that these vessels are very safe,” he said.

Minister of Energy and Mineral Development, Ruth Nankabirwa, thanked Mahathi Infra for training and offering technical skills to Ugandans.

She remarked that this project marks a significant milestone in Uganda’s energy sector, demonstrating the country's commitment to diversifying fuel import routes and promoting economic growth.

Board Chairman of Mahathi Infra Uganda, Dr. Steve Mainda, noted that the inefficiencies of road transport would be addressed by Lake Victoria Logistics.

“We have invested USD 100 million in this project. The vision is to establish a more efficient and sustainable solution to decongest the roads, ease border post traffic, and reduce the turnaround time and cost of moving fuel from Mombasa to Uganda,” he said.

Dr. Mainda also highlighted that the company has two state-of-the-art tank ships, each with a capacity of 4.5 million litres, made in Uganda.

Also see: Top 10 African countries with the highest fuel prices in May 2024

“They are operational, and each ship can make 10 trips a month, transporting 90 million litres every month. We plan to construct two more ships to bring the monthly capacity to 180 million litres,” he added.

The facility includes 14 storage tanks with a collective storage capacity of 70 million litres, the largest in Uganda and East Africa.

A 256-metre-long jetty has been set up in Bugiri-Bukasa, facilitating the berthing of vessels and enabling efficient cargo handling.

Former board Chairman, Capt. Mike Mukula, thanked President Museveni for his support, remarking that this investment would significantly reduce the cost of doing business in the country by lowering transport costs between Kisumu and Uganda.

This content was created with the help of an AI model and verified by the writer