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Museveni launches Lake Victoria logistics, Equity Bank’s Mwangi hailed

President Museveni inspects one of the oil tankers

Entebbe, Uganda | THE INDEPENDENT | President Yoweri Museveni Thursday launched the Lake Victoria Logistics facility in Kawuku Bwerenga, a project to transport and store oil from the port of Kisumu to Entebbe using oil tanker ships. He said it would crucially help the country stop relying solely on road transport to import fuel.

“Our transport system is presently irrational because of so much traffic on the roads, which is not economical. By getting fuel off the roads, we are targeting the rationalization of the economy,” President Museveni said at the launch attended by hundreds of leaders in the energy, transport and business sector.

He hailed Mahathi Infra Uganda Limited, who put together the project, for ensuring they fully protect the environment, as the facility is next to a key resource, the waters of Lake Victoria.

“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. We used to have wagon ferries going to Kisumu, going to Mwanza, carrying coffee, carrying things which even if they fall in the lake, they are not as dangerous as petrol,” he said.

Gen. Katumba Wamala, Minister of works and transport had said earlier, that the transport tankers have been constructed and they meet the international standards with a double hull, which means they are highly safe for transportation of oil on this lake.

This transformational and groundbreaking project will significantly enhance Uganda’s oil and gas sector capabilities and promises to transform our nation’s transportation, storage, and handling of petroleum products.

Ruth Nankabirwa, Energy minister said 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, on the availability of the Lake Victoria Water Resource and appropriate infrastructure at Kenya Pipeline

Mike Mukula, Chairman Mahathi Group said hailed Equity Bank for credit financing, and said the investment will be a major catalyst in reducing the cost of doing business in the country, because transport is one of the major cost pushes.

“I take the honor to recognize one key financier and that is Equity bank and more so, Mr. James Mwangi, a visionary, pan africanist, and I want to say that an investor in the region who gave us the first $70 million in the investment that was undertaken here,”  he said.

The project has two made in Uganda tanker ships, each with a capacity of 4.5 million litres. As each ship can make ten trips a month, the project has the capacity to transport 90 million litres every month.

Equity Group was represented at the function by Gertrude Karugaba Wamala, the chief legal officer.

“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,” she said.

Gertrude Karugaba Wamala, the chief legal officer receives a memento from Chairman Mukula. Getrude Karugaba Wamala, chief legal officer Equity group, represented Group CEO Dr James Mwangi

“Equity Bank’s participation in this project is both substantial and strategic. Our journey with Lake Victoria Logistics started 5years ago, and we have since provided credit facilities through Equity Bank Uganda that has enabled what we see here today.”

Board chairman Mahathi Steve Mahinda said the Lake Victoria Logistics has the largest storage capacity in the country and in East Africa, and holds 15 days of the country’s consumption, acting as a key asset to oil importing companies.

The terminal boasts of loading capacity of 20 trucks simultaneously, and can discharge about 7 million litres in a single shift, the largest search facility in East and Central Africa.

“We are unwavering in our commitment to safety. The tanks are constructed as an API Standards, ensuring both safety and efficiency,” he said.

Chief guest Museveni

 

 

 

 

 

 

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