Starting Thursday, July 18, 2024, Lake Victoria Logistics (LVL) will officially commence the transportation of oil from the Kisumu port in Kenya to Entebbe via Lake Victoria, a venture costing $100 million (approximately sh369 billion), according to officials.
LVL, situated in Bukasa-Bwerenga, Kawuku, Wakiso district, is a joint project funded by Marathi Infra Services, Digimon Group, and Africa Finance Corporation. The company, initially founded as Mahathi Infra Uganda in May 2015, aims to revolutionize petroleum logistics for Uganda and other landlocked countries such as Rwanda, Burundi, and DR Congo.
President Yoweri Museveni, who laid the foundation stone in 2018, will attend the official launch of the facility today. LVL’s operations, which began in July 2023, have seen its first vessel, MT Kabaka Mutebi II, make 55 trips transporting 113 million liters of oil. The introduction of a second vessel, MT Elgon, will increase the capacity to 90 million liters per month, or one billion liters annually. The company boasts 14 storage tanks with a collective capacity of 70 million liters, making it the largest fuel storage facility in Uganda.
The project is set to reduce transportation costs by 40% and cut down truck-related CO2 emissions by 90,000 tons per trip. LVL’s infrastructure investment includes an oil pipeline linking Kisumu and Mombasa, reducing road transport reliance for fuel delivery from Kenya to Uganda.
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In addition, the Uganda National Oil Company (UNOC) has started direct importation of petroleum products via Mombasa. On July 3, 2024, UNOC received its first shipment of 78 million liters of petrol and 65,000 tonnes of diesel. Energy Minister Ruth Nankabirwa is negotiating with Kenyan authorities to lower the bond fees at the Vito terminal to ensure competitive fuel prices in Uganda. The Petroleum Supply (Amendment) Act 2023 has granted UNOC exclusive rights to import and supply petroleum products in Uganda, a move aimed at stabilizing local pump prices.
