Engen has significantly increased its supply capacity to southern African countries with the launch of the Beira Terminal in Mozambique. The new terminal is aimed at strategically boosting the security of supply and strengthening the supply chain in the region.
The 24 000m³ Beira Terminal will supply petrol, diesel and lubricants to the main hubs in Mozambique as well as to other countries in southern African where Engen has operations, including Zimbabwe.
“We’ve tested railway capabilities from Beira to Bulawayo in Zimbabwe and to Francistown in Botswana, which was very successful. In essence, this means we can take some pressure off our Durban Refinery and supply Botswana and Zimbabwe directly from our new depot,” says Drikus Kotze, general manager of Engen’s International Business Division.
According to Teodomiro Sarmento, managing director of Engen Mozambique, the depot’s strategic value is to ensure Engen meets its growth and future market share targets and to establish another supply corridor into Southern Africa.
“This will ensure security of supply for Engen’s operations. Having sufficient capacity in the region will reduce our dependency on third parties, lessen our cost of supply through pipeline and improve efficiencies,” he says.
Kotze, says the investment reaffirms Engen’s strong commitment to the Mozambican market and the African continent. “Where others have disinvested in search of more profitable upstream opportunities elsewhere, Engen has invested extensively in these regions, supplying infrastructure, harnessing local skills and business partnerships and giving back to the communities in which we operate.”
The company has been on a recruitment drive to find local staff to run the depot and all positions have now been filled with local personnel. The depot is fully operational and the first pipeline injections were successfully executed.
History of investment
Engen started operations in Mozambique in 1996. Since then, the company has invested continuously in the country by creating jobs, establishing, as far as possible, supply and service contracts from local suppliers as well as contributing to the economic growth of the country.
Engen has fuel storage arrangements with third parties in Maputo and Nacala as well as the fuel terminal in Beira. It also operates lubricants warehouses in Maputo, Beira and Tete.
In 2011, Engen acquired Chevron’s assets, infrastructure and business in Mozambique. A two-million-litre depot at ICVL Benga coal mine was built in 2012 as well as a 500 000-litre bulk lubricants facility at Vale Moatize coal mine in 2013.
Currently, Engen’s operations cover the main hubs in the three geographic regions of Mozambique. The company also operates service stations from Maputo Province in the south to Tete in the Centre. Expansion plans will cover growth areas in northern Mozambique – particularly in Nacala and Pemba – and the main corridors.
Sarmento says further investments are planned in future to increase the depot capacity in line with market demand.