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The East African : Feb 14th 2015
40 RACE FOR NEW MARKETS Kenya, Dar build new oil terminals The new te≥minals a≥e supposed to imp≥ove e∞ciency in delive≥y of fuel By KENNEDY SENELWA Special Correspondent K enya and Tanzania are each building new oil terminals to increase efficiency in the delivery of fuel for domestic use and also capture the lucrative market in the neighbouring landlocked countries of Uganda, Rwanda and Burundi. The race to lock in the land- locked markets has seen the Tanzania Ports Authority (TPA) seek investors to develop a new terminal with a bigger capacity at Kigamboni to replace the old Kurasini oil jetty in Dar es Salaam, which is a continuation of the first phase of a project that entailed replacement of the single point mooring buoy (SPM) system at Kurasini. Leighton Offshore Pte Ltd of Sin- gapore completed building $66.48 million SPM at Kuraisini Oil Jetty (KOJ) to receive tankers of up to 150,000 metric tonnes in November 2012. The facility previously handled tankers ferrying a maximum of 40,000 tonnes of fuel, leading to congestion. Tanzania Italian Petroleum Re- serves Ltd (Tiper) expects to double its storage from 141,000 to 213,200 cubic metres in Dar es Salaam after completing the refurbishment of two tanks at a cost of $11 million. “The new pipe connection will also increase efficiency in receiving diesel from the SPM with the current flow rate of 1,500 cubic metres per hour rising to 2,000 cubic metres,’’ said Tiper managing director Daniel Belair. The firm plans to build new 100,000 cubic metres tanks to increase storage to 313,200 cubic metres. Tiper will also invest between $12 million and $16 million in new pipelines to deliver more fuel from Kigamboni to clients at Kurasini. Kenya has in the meantime en- gaged the services of Danish engineering firm Niras to design a new The EastAfrican BUSINESS FEBRUARY 14-20,2015 T≥anspo≥t body to enfo≥ce ca≥d use in phases By SCOLA KAMAU Special Correspondent THE KENYA National Transport Safety Authority (NTSA) has changed tack in the implementation of the cashless payment system for public service vehicles. On Tuesday, NTSA initiated a new approach, targeting specific bus terminuses where they introduced the system to commuters instead of waiting until a PSV operator complies during the annual inspection. “We realised some operators Crude oil tanker offloading 50,000 tonnes of crude oil at Shimanzi oil terminal at Mombasa. Picture: File facility for the Kenya Ports Authority in Mombasa to replace the existing Kipevu Oil Terminal. The terminal has one berth handling tankers ferrying up to 80,000 metric tonnes of refined fuel. This is way below the regional demand, estimated at 450 million litres monthly. The new offshore facility will have four berths to accommodate four tankers, each of 150,000tonnesmaximum capacity. The region depends on fuel im- ported from the Middle East and India since the Mombasa-based Kenya Petroleum Refineries Ltd shut down on September 4, 2013 after exhausting its last stocks of Murban crude oil. “Mombasa is the gateway for im- ports and exports not only to Kenya, but landlocked countries,” said KPA’s head of projects development Daniel Amadi. Kenya Pipeline Company (KPC) has started a Ksh4.8 billion ($53 million) expansion of Nairobi terminal by building four tanks to 450 By CHRISTABEL LIGAMI Special Correspondent KENYA AIRWAYS is waiting for the go ahead from government to resume flights to West Africa . Health Cabinet Secretary James Macharia said two weeks ago that the airline would resume flights to the region, which were stopped last year in the wake of the Ebola pandemic. “We shall review the decision on suspending the flights to West Africa countries, then lift the ban,” said Mr Macharia. KQ chief executive officer Mbuvi hold 133.52 million litres of fuel, equal to 22 per cent of the firm’s 612.32 million litre capacity. Prashanth Projects Ltd of India and Kenya’s Nyoro Construction are jointly building tanks to receive more fuel from the new MombasaNairobi pipeline expected to be operational next year. The Nairobi terminal is currently the second depot of the state-owned KPC, with aits capacity of 100,528 cubic metres, after the Kipevu oil storage facility in Mombasa whichholds 326,333 cubic metres of petroleum products. Zakhem International Construc- tion Co Ltd is constructing a new 450-kilometres long 20-inch refined products pipeline from Mombasa to Nairobi to replace the 36-year old 14-inch refined fuel pipeline. “The key objective of this project is to replace the existing line 1 with a suitable pipeline size to meet projected demand of petroleum products in Kenya and East Africa up to 2044,” said KPC managing director Charles Tanui. Line 1 was inspected by NDT Million litres that the East African region consumes monthly Middle East in financial year 2009 -2010. The inspection firm recommended replacement of the pipeline as it was no longer economical to repair it because of extensive cor- NEW PIPELINES Leighton Offshore Pte Ltd of Singapore completed building $66.48 million SPM at Kuraisini oil jetty to receive tankers of up to 150,000 metric tonnes in November 2012. Tanzania Italian Petroleum Reserves Ltd (Tiper) expects to double its storage from 141,000 to 213,200 cubic metres in Dar es Salaam in 24 months. The Kenya Ports Authority (KPA) is building a new facility in Mombasa that will have four berths to accommodate four tankers, each of 150,000 tonnes maximum capacity. Zakhem International Construction Co Ltd is constructing a new 450kilometre long 20-inch refined products pipeline from Mombasa to Nairobi to replace the 36-year old 14-inch refined fuel pipeline rosion. Kenya and Uganda are expected to complete building a $300 million fuel pipeline in 2017. The new 350-kilometre 12-inch facility to Kampala will be connected to the existing pipeline in Eldoret town in western Kenya. could take long time to implement the system if left to do it voluntarily or at the time of inspection and licence renewal. Most of the targeted vehicles are now rushing to comply and passengers are also purchasing cards,” said Francis Meja, director general of NTSA. However, the introduction at the three busiest boarding points — Kencom, GPO and Ambassador — in Nairobi left commuters stranded as operators rushed to install the new gadgets. Harmonisation The enforcement comes amid questions over harmonisation of cash payment systems so that commuters and operators are spared the cost of having many cards and reading machines, respectively. Stephen Mutoro, Consumer Fed- eration of Kenya (Cofek) Chairman, said the government should come up with a law to make the enforcement legal. Experts in banking and finan- cial inclusion services however said banks providing the service were still working to ensure all cards could be used at any till. Equity, KCB, Family and Co-operative Banks launched their cashless transport cards last year. “The plan requires efficient in- frastructure, allowing systems to communicate to each other like in the case of ATM visa cards. We are working on this infrastructure,” said Habil Olaka, Kenya Bankers Kenya Ai≥ways to ≥esume flights to West Af≥ica soon Ng u n z e said the a i r l i n e was ready to resume the flights as soon as the government of f icially gave it the green light. “At the moment, there has been no official communication from the government on lifting the suspension for nationals of those countries that Mbuvi Ngunze. Picture: File were not allowed into Kenya. We are engaging the government on the same issue and will communicate appropriately,” he said. Kenya suspended all flights to the two West African countries of Liberia and Sierra Leone, the countries hardest hit by the Ebola pandemic, in August last year. Until the ban, KQ used to fly 44 times a week to 10 West African cities, comprising a quarter of the airline’s 38 destinations on the con- tinent. Last October, KQ estimated that it would lose at least 4 per cent of its annual revenues if the Ebola wer- enot controlled in Liberia, Sierra Leone and Guinea by the end of the financial year in March 2015. Although the airline has not in- dicated how much of its revenue is derived from West Africa, estimates based on the number of destinations and frequency of flights show that the West African routes may contribute up to $171 million in revenue for the airline on an annual basis. More than 9,000 people have died from Ebola since December 2013. According to WHO reports for last week, the number of new cases of Ebola has risen in all of West Africa’s worst-hit countries for the second week in a row, since this January. By Wednesday Sierra Leone had registered 76 of the 144 new cases, Guinea 65 and Liberia three. The WHO said that the increase highlights the “considerable challenges” that must still be overcome to end the outbreak. Kenya early this year extended its support to West African countries in the fight against the deadly Ebola virus by deploying 170 Kenyan health workers to Sierra Leone and Liberia as part of the African Union mission to contain Ebola in West Africa.
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