To solve fuel transportation woes, the National Oil Company of Malawi (Nocma) says it has identified Tanzania’s Tanga Port as a viable alternative to the ports of Dar es Salaam and Beira for fuel imports.
Nocma spokesperson Raymond Likambale said that while Tanga Port is 1 600 kilometres from Lilongwe—about 60 km longer than Dar es Salaam—the latter and Beira in Mozambique remain congested until mid this year.
On the other hand, he said Tanga offers faster operations, better road infrastructure and can handle over 200 fuel tankers daily.
Speaking during a media tour of Tanga Port on Thursday, Likambale acknowledged delays in the first shipment of 40 000 metric tonnes (MT) of fuel which Malawi procured using the Kenya’s government- to-government (G2G) arrangement with Abu Dhabi.
Said Likambale: “Currently, our teams are working diligently to finalise the next government-to-government consignment. Nocma recognises that the distance from Malawi to Tanga is longer than to Dar es Salaam, but the port’s efficiency, road quality and infrastructure offset this challenge.
Haulage of fuel from the port of Da es Salaam has been facing glitches resulting from delays in issuance of clearance by the Tanzania Revenue Authority (TRA) while in Mozambique, the problem has been attributed to the post-election protests. Transporters have thus been afraid of sending their trucks there because of the ongoing political unrest.
In an earlier interview, Transporters Association of Malawi spokesperson Frank Banda said the glitches in Tanzania were partly because the TRA holds papers for loaded trucks and any slight disturbance on logistics results in delays in transportation.
On his part, Tanga Terminal technical manager for GBP Ernest Lawuo, whose company is managing the fuel storage and shipments, said there are cost benefits for Malawi in using the port.
He said the Tanga dual-pipeline system, for example, unloads 40 000 MT in two days, thereby saving $18 000 daily in demurrage fees.
“The port here is not as congested as in Dar es Salaam. In fact, the moment we load today, your truck can be discharged. We can process all the documentation today and tomorrow they can start releasing the trucks. We have on what time you finish. But if you finish late, of course you can process the documentation, and the truck would then leave the following day. This cannot happen in Dar es Salaam because of the traffic jam. To move from Kurasini to Mungo can take you about six hours in Dar es Salaam.”
In February this year, a high-level UAE delegation also came to Malawi to finalise a G2G fuel procurement agreement.
In an earlier interview, Economics Association of Malawi president Bertha Bangara Chikadza said expectations are high that arrangements like these can be made for other strategic commodities such as fertiliser to ensure their timely availability.
She added that the G2G arrangement is the way to go because it allows for longer-term foreign exchange trading instruments, which give the country a breather to pay while having constant supply of the strategic commodities.
Earlier this month, a Malawian delegation led by Principal Secretary in the Ministry of Energy Alfonso Chikuni visited the United Arab Emirates (UAE) for bilateral talks with oil-producing nations.
The team engaged with Oman’s OQT, Abu Dhabi’s Adnoc, and national oil companies of Saudi Arabia, Kuwait and Dubai.
However, outcomes of these discussions remain undisclosed.
In December last year, President Lazarus Chakwera met UAE leader Sheikh Mohamed bin Zayed bin Sultan Al Nahyan and asked that country to help Malawi end her persistent erratic fuel supply.
