Kampala, Uganda – In a significant milestone for Uganda’s petroleum logistics sector, President Yoweri Kaguta Museveni yesterday launched Lake Victoria Logistics, a company poised to transform the way fuel is transported in the region.
The launch marks the culmination of a journey that began in May 2015, when the company was founded as Mahathi Infra Uganda. With a vision to change the petroleum logistics landscape in Uganda and neighboring landlocked countries, Lake Victoria Logistics has been working tirelessly to reduce the cost of transporting fuel.
The President of Uganda H.E Yoweri Kaguta Museveni, who laid the foundation stone for the facility in 2018, expressed his excitement about the launch.
“I’m 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 that it is much cheaper than it was. The most important thing is for you to come to the market of Uganda and once you enter our market, you are talking about the market of DR Congo, South Sudan, Rwanda, Burundi and so on. So, this is really a goldmine for investors,” he said.
The company’s launch is expected to have a significant impact on the region’s economy, particularly in Uganda, Rwanda, Burundi, and the Democratic Republic of Congo, which rely on Uganda for their oil supplies.
The president also highlighted the National Resistance Movement’s government strategic approach towards the economic development of Uganda.
“People who don’t understand the NRM strategy always miss the point. By 1986, the money economy of Uganda had collapsed, therefore that time, the task was to revive the economy which had collapsed so when you hear people talking of traffic jam and so on, that means the economy has been revived; you cannot have the traffic jam if you people don’t have money to buy cars and fuel,” he said.
The president further noted that with the revival of the economy by the NRM government, it’s time to rationalise it. “During that phase, we could not handle the other elements of rationalisation, therefore our transport system at the moment is irrational, why? We have got so much traffic on the roads which is not economic but that’s not accidental, it is part of the strategy we adopted. The economy is now bigger but with those irrationalities,” he expounded.
Museveni also encouraged the investors to develop capacity for other forms of cargo other than fuel.
“I advise you to look for durable areas of investment because right now the recovery phase of Uganda’s economy is finished, everything is there, it is now the rationalisation. You should also bring us other investors who can invest in other sectors,” he said.
The Minister of Works and Transport, Gen. Katumba Wamala outlined that the project will be very vital in reducing the cost of transportation of fuel as well as the cost of fuel in Uganda and the region.
Your Excellency, my Ministry is responsible for regulating transport of all forms; on road, air and also on water. We have been involved in this project. Our country being land-linked, we have been relying on and continue to rely heavily on road transport for the transportation of our cargo including fuel and petroleum products. This road transport comes along with a number of costs such as high road maintenance costs, fuel adulteration, road accidents, among others,” the Minister said.
In addition, he stated that the effort will greatly reduce the high maintenance costs, traffic congestion on roads and the frequent associated road accidents. “I just want to reassure you that these vessels are very safe,” he added.
Meanwhile, the Minister of Energy and Mineral Development, Hon. Ruth Nankabirwa thanked Mahathi Infra Uganda, noting that the project is a significant milestone towards Uganda’s energy sector and a testament to the country’s commitment to diversity fuel import routes and promoting economic growth.
The board Chairman of Mahathi Infra Uganda, Dr. Steve Mainda said the transportation of fuel in Uganda has been limited to road transport which has worked for many years but with challenges and inefficiencies.
He however noted that with the coming of Lake Victoria Logistics company, such inefficiencies will be no more.
“The vision of this project is to establish a more efficient and sustainable solution to decongest the roads, ease border post traffic and reduce turn-round time and cost of moving fuel from Mombasa to this place. We have invested USD100 million in this project,” he said.
With the launch of Lake Victoria Logistics, the region is poised to experience a new era of efficient and cost-effective fuel transportation.
