Kisumu on path to being region’s fuel export hub

Kenya Pipeline Company Managing Director Joe Sang (2nd from right) listens to KPC General Manager, infrastructure, Billy Aseka (right) illustrate how the Kisumu oil jetty operates. The county is counting on the facility to become the next petrol export hub for the region. PHOTO | TONNY OMONDI | NMG 

By JUSTUS OCHIENG

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Summary

• The facility, according to Kenya Pipeline Company Managing Director Joe Sang, is designed to load vessels of up to 4.5 metric tonnes of fuel.
• The project was implemented by Southern Engineering Company (Seco), a local firm and financed by the Kenya Pipeline Company.
• Mr Sang told Smart Company in an interview that loading will take place after clearance from the Kenya Revenue Authority, Uganda Revenue Authority and Rwanda Revenue Authority as the case may be.
• He said the jetty’s primary target market will be around the lake and expanding the export market into Uganda, mines in northern Tanzania, Rwanda, Burundi, and Eastern DRC.

Petroleum transportation officials are banking on the completed Sh1.7 billion Kisumu oil jetty as the key that will open doors to growth in the lake side town turning it into a fuel export hub.

The facility, according to Kenya Pipeline Company Managing Director Joe Sang, is designed to load vessels of up to 4.5 metric tonnes of fuel.

“The loading will involve ships that are specially designed to carry fuel. The jetty will handle super petrol, diesel and jet fuel,” says Mr Sang.

The project was implemented by Southern Engineering Company (Seco), a local firm and financed by the Kenya Pipeline Company.

Mr Sang told Smart Company in an interview that loading will take place after clearance from the Kenya Revenue Authority, Uganda Revenue Authority and Rwanda Revenue Authority as the case may be.

He said the jetty’s primary target market will be around the lake and expanding the export market into Uganda, mines in northern Tanzania, Rwanda, Burundi, and Eastern DRC.

With the coming into operation of the jetty, he adds, hundreds of trucks will be driven off the roads hence saving the country billions of shillings set aside annually for road maintenance.

“It will also enhance safety because marine transportation of fuel is safer than road because there will be reduced tanker accidents, fuel fires, siphoning hence saving lives and conserving our environment,” said the MD.

“Most important, the jetty will address the fuel adulteration concerns that have been raised especially on the western Kenya transportation circuit,” he said.

Emerging opportunities from the project, both on the lake land, he says, will in turn stimulate economic activity across the Great Lakes Region with an increase in vessels inspiring other industries to take up this mode of transport.

“This will mean more revenue for KPC hence more taxes for the government of Kenya,” he said.

READ: KPC unveils measures to speed up oil delivery

Kisumu Governor Anyang’ Nyong’o, says the multibillion shilling venture will create employment for the youth and spur regional development.

“As a county government, we support any project geared towards empowering the people and spurring economic development,” the governor says.

Mr George Wachira, Director at Petroleum Focus Consultants says the project will spur East Africa’s oil transport.

“Kenya pipeline must market the facility to neighbours for it to become part of their oil import options,” says the expert.

He says the project is good investment “as it revives the lake petroleum transport infrastructure that collapsed in 1977.”

Kisumu County Executive Committee Member for Public Works, roads and transport Thomas Ondijo says it will generate direct and indirect jobs to local.

“We highly welcome the idea as it will boost the economy of our county,” he said.

Speaking during the handing over of the project by Seco, KPC Chairman John Ngumi said it will revive Kisumu as the premier inland port in Africa.

Mr Sang said the jetty is expected to increase maritime transport activities on the lake with the shipping and docking facilities required to support the venture also enabling other industries to develop additional transport services along the lake.

This, he says, will mean more economic activity in Kisumu and its attendant facilities such as the Kisumu International Airport.

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