Lake Victoria Logistics was established today by President Yoweri Kaguta Museveni with the goal of bringing down the price of gasoline transportation in Uganda.
With the goal of transforming the petroleum logistics for Uganda and other landlocked nations like Rwanda, Burundi, and the Democratic Republic of the Congo that obtain their oil through Uganda, Lake Victoria Logistics was established in May 2015 as Mahathi Infra Uganda. President Museveni officially opened the building today after laying the facility’s foundation stone in 2018.
At the Bugiri-Bukasa, Kawuku-Entebbe Road launch, President Museveni thanked Mahathi Infra Uganda and Lake Victoria Logistics for their investment in Uganda.
“I’m thrilled that I made this change. Mahathi, you’ve come to our aid. Since you withheld the numbers, I am unsure of the exact difference in price, but I assume it is significantly less than it was. The most crucial thing is for you to visit the Ugandan market; after you do, you will be discussing the markets in the Democratic Republic of the Congo, South Sudan, Rwanda, Burundi, and other places. Thus, for investors, this is truly a jackpot,” he remarked.
Additionally, President Museveni disclosed that the National Resistance Movement (NRM) government’s effective policy has allowed Uganda’s economy to improve gradually.
“Those who are unaware of the NRM method are continually missing the mark. Since Uganda’s money economy had collapsed by 1986, it was necessary to rebuild it at that time. As a result, when people talk about traffic jams and other issues, it indicates that the economy has recovered. After all, traffic jams cannot exist if people are unable to afford cars and fuel, the speaker stated.
The President went on to say that since the NRM government had brought about the country’s economic recovery, it was imperative that they rationalize it.
Because we were unable to manage the other aspects of rationalization at that time, our transportation system is currently illogical. Why? The reason for the excessive traffic on our roads is not economic; rather, it is a deliberate outcome of the approach we took. He continued, “The economy is greater now, but it still has those irrationalities.
“We need to start rationalizing right now, and this project is a part of that. You are aiming for the economy’s rationalization by having fuel removed from the highways. It’s wonderful that all possibility of petroleum pollution in the freshwater lake has been fully ruled out, as the owners and ministers have told the nation.
In addition, President Museveni urged the investors to build capacity for cargo types other than petroleum.
“I suggest you seek out long-term investment opportunities because Uganda’s economy has now completed its recovery phase; all the necessary components are in place; the next step is rationalization.” He responded, “You ought to bring us additional investors who can make investments in different industries as well.
According to Gen. Katumba Wamala, Minister of Works and Transport, the project will be crucial in bringing down fuel prices in Uganda and the surrounding area as well as in the cost of fuel transportation.
“Your Excellency, all modes of transportation—air, sea, and road—are subject to regulation by my Ministry. This initiative has involved us in some way. Because we live in a landlocked nation, we have historically and currently mostly depend on road transportation to move our goods, which includes fuel and petroleum products. The Minister stated that there are other expenses associated with road transportation, including high maintenance costs, fuel adulteration, and accidents.
“This initiative will significantly lower our highways’ heavy traffic, expensive maintenance bills, and frequent related accidents. He continued, “I just want to tell you that these vessels are really safe.
Hon. Ruth Nankabirwa, Minister of Energy and Mineral Development, expressed gratitude to Mahathi Infra for providing technical expertise and training to Ugandans employed on the project.
According to her, this project represents a critical turning point for Uganda’s energy industry and demonstrates the nation’s dedication to diversifying its fuel import routes and fostering economic expansion.
Dr. Steve Mainda, the board chairman of Mahathi Infra Uganda, stated that the only means of fuel transportation in Uganda is via road, which has been effective for many years but has drawbacks and inefficiencies.
But he added that these inefficiencies would end with the arrival of Lake Victoria Logistics.
The goal of this project is to create a more sustainable and effective way to clear the roads, lessen traffic at border posts, and lower the cost and turnaround time associated with transporting fuel from Mombasa to this location. In this project, we have put in USD 100 million,” he stated.
Dr. Mainda added that the corporation already owned two cutting-edge, 4.5 million-liter tank ships that were built in Uganda.
“They are in service, and every ship has a monthly capacity of ten journeys. Currently, we are able to move 90 million liters every month. In order to increase the monthly capacity to 180 million liters, we intend to build two more ships,” he stated.
In addition, the facility boasts a completely new logistics ecosystem with 14 storage tanks that together have a capacity of 70,000,000 liters for storing fuel in the region. This is East Africa’s and Uganda’s largest fuel storage capacity.
Additionally, Dr. Mainda told the President that a 256-meter-long jetty had been constructed in Bugiri-Bukasa to facilitate vessel berthing and enable effective cargo handling.
Capt. Mike Mukula, the previous chairman of the company’s board, expressed gratitude to President Museveni for his support of the enterprise.
“This marked the start of the journey, and I want to personally thank you, sir, when you received us in Nakasero in 2017,” he remarked.
“We would like to thank you for your initiative and foresight in enabling UNOC to be the key partner in delivering fuel to the country. This investment will be a major catalyst in reducing the cost of doing business in the country because transport is one of the major cost pushers.” “Lake Victoria Logistics will greatly reduce the cost of transport between Kisumu and Uganda.”
“This marked the start of the journey, and I want to personally thank you, sir, when you received us in Nakasero in 2017,” he remarked.
“We would like to thank you for your initiative and foresight in enabling UNOC to be the key partner in delivering fuel to the country. This investment will be a major catalyst in reducing the cost of doing business in the country because transport is one of the major cost pushers.” “Lake Victoria Logistics will greatly reduce the cost of transport between Kisumu and Uganda.”
