Museveni unveils 70 million-litre fuel storage facility on Lake Victoria

President Museveni has launched a fuel storage facility with a capacity of 70 million liters on Lake Victoria, aimed at enhancing Uganda’s fuel security.

The facility, operated by Lake Victoria Logistics, is situated at Bugiri-Bukasa in Wakiso district and consists of 14 tanks that collectively hold 70 million liters of fuel.

During the launch event on Thursday 18, July 2024, President Museveni expressed his approval and support for the new fuel storage facility.

“This is the time to go into rationalization and this is part of it by getting fuel off the roads. This is rationalization of the economy as we are now going for the best practices,” said President Museveni.

“I am happy for this since it will help us, now that it is cheaper than it was (using road transport). Once you have entered market of Uganda, you are talking of the market of South Sudan, Rwanda, Burundi, DRC. You have made the best decision,” he added.

He pledged the government’s commitment to enhancing the surrounding road network to facilitate the efficient transportation of fuel from the facility to the market.

Capt. Mike Mukula, the chairman of Lake Victoria Logistics, stated that the new facility would contribute to reducing fuel costs in the country.

“This investment will be a major catalyst in reducing cost of doing business in the country since transport is one of the major pushers of high costs. It will reduce cost of transport between Kisumu and Uganda,” said Capt. Mukula.

Ravi Shankar, the Managing Director of Mahathi Infra, highlighted that the facility features a 256-meter-long jetty for vessel berthing, ensuring efficient cargo handling. Additionally, it includes two tanker ships, each with a cargo capacity of 4.5 million liters.

“This facility provides fuel security for the country but also helps reduce strain on the road as fuel is transported on water unlike the conventional way of using trucks which is also more expensive.”

The Works and Transport Minister, Gen. Katumba Wamala welcomed the new facility and project at large.

“Being land locked we continue to depend on road transport which comes with high maintenance costs, fuel adulteration, traffic congestion, accidents and related non-tariff barriers which lead to delays and increased costs. It is therefore a deliberate government policy to reduce number of trucks which transport oil from Kisumu to Uganda by use of rail and water transport or any other means,” Gen. Katumba said.