Malawi: Nacala Logistics Moves to Increase Fuel Haulage to Lilongwe to 15 Million Litres Per Month

15 July 2024
Nyasa Times (Leeds)
By Watipaso Mzungu Jnr

Nacala Logistics Limited has expressed its commitment to increasing to 15 million litres per month the amount of fuel being hauled to Lilongwe via rail transport.

The company has disclosed that it has already held talks and made agreements with its partners in Malawi, the National Oil Company of Malawi (NOCMA) and Petroleum Importers Limited (PIL), to hit the ground running.

According to the update sourced from its Facebook page, Nacala Logistics has a fleet of 88 tanks with a total capacity of 3.5 million liters, capable of transporting both diesel and gasoline.

The company is currently transporting fuel to Nacala vs Blantyre, Nacala vs Lilongwe, Nacala x Cuamba and Nacala vs Moatize. In 2023, Nacala Logistics reached the historic mark of transporting a total of 114,273,622 liters. Of this volume, 94,435,897 liters were transported to Moatize, 18,968,105 liters to Malawi and 869,620 liters to Cuamba.

"For this year, Nacala Logistics and its partners in Malawi, NOCMA (National Oil Company of Malawi) and PIL (Petroleum Importers Limited), have made a commitment to increase the volume to Malawi (Blantyre and Lilongwe) by about 15,000,000 liters per month," reads the statement on the page.

Mzuzu-based economist Christopher Mbukwa has described the development as critical, saying it will help the country cut costs on transportation of fuel.

Mbukwa said this will, in turn, help the country to revive its economy.

"Hauling fuel through rail transport helps to cut on costs and ferry relatively larger volumes at once. One of the determinants of fuel price is transport as such it's extremely important that as a country we should find sustainable fuel transport. Use of pipelines from Tanzania has been discussed before. There is need to find how feasible this is," he said.

Nacala Logistics operates rail freight transport along the Nacala corridor, departing from the Port of Nacala to various national and international destinations.

The largest flow of cargo transport is transit from Nacala to Malawi and vice versa. Cargo in transit from Nacala to Malawi accounts for 90% of the volume, while the return from Malawi to Nacala corresponds to 10% of the volume.

Nacala Logistics' annual transport capacity is 4,000,000 tons, depending on the availability of cargo in each flow.

Nacala Logistics caters to all types of cargo transportation, including containerized cargo, bulk cargo, bagged cargo, grain, and liquid bulk.

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