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Tuesday, July 7, 2020

SA’s Transnet proposes to establish fuel pipeline from Ndola to Lusaka

Economy SA’s Transnet proposes to establish fuel pipeline from Ndola to Lusaka

Mr. Emmanuel Mwamba makes an intervention during during discussion before the launch of the Zambia-South Africa Business Council in Johannesburg
Mr. Emmanuel Mwamba makes an intervention during during discussion before the launch of the Zambia-South Africa Business Council in Johannesburg

TRANSNET of South Africa has proposed to establish a multi-purpose fuel pipeline from Ndola to Lusaka which will help Zambia reduce its fuel pump price, among other benefits.
Transnet has also offered, on terms that could be agreed on later, to pass on to Zambia Railways Limited (ZRL) its railway fuel tankers that it previously used to transport fuel stocks between Durban and Johannesburg. This follows Transnet’s completion of a 20 billion rand pipeline between Johannesburg and Durban.

This is contained in a statement issued to media by Press Secretary at Zambia’s mission to South Africa Nicky Shabolyo.

The company has had to take the pipeline option as this has in recent times been identified as the most cost effective and efficient way of delivering fuel across long distances.

The company has further called for the resolution of challenges it has been facing with ZRL in implementing its so-called North-South Corridor project which is part of its efforts to realising its grand venture of integrating South Africa with the rest of the continent through the creation of competitive corridor supply chains.

The projects came to light when Zambia’s High Commissioner-Designate to South Africa, His Excellency Mr. Emmanuel Mwamba met Indeni Chairperson Mr. Johnstone Chikwanda, Transnet Executive Manager for International Business Ms. Nyameka Madikizela and Commercial Manager in charge of private sector participation Ms. Maggie Tsholetsane at his office in Pretoria yesterday.

Transnet is a South African state-owned company with experience in rail transportation, port management as well as pipeline technology and transportation.

Ms. Madikizela said Zambia had strategic resources and its location was attractive to Transnet in as far as the logistics supply chain and rail transportation of imports and exports through South African ports was concerned. The North-South Corridor, to which Zambia is a major party, can accommodate bigger vessels at a shorter turn-around time when compared to other export/import corridors.

“Transnet has been working closely with Zambia Railways Limited as a strategic partner, as Zambia is one of the few countries where there is return cargo originating from its source,” Ms. Madikizela said.

She said Transnet has established three Joint Operating Centres (JOC’s) on three of their international corridors which are Maputo, Noth-South and East-West Corridors and that the plan was to integrate South Africa with the rest of Africa through corridor chains that will integrate its ports and railways efficiently.

Ms. Madikizela said ZRL was a co-signatory to the North-South Corridor operations memorandum of agreement (MOA) which included the development of the Maputo Corridor long-term railway and port investment plan so as to ensure that the planned volume growth and logistics are synchronised with the required infrastructure investment.

She regretted that the momentum on the North-South Corridor has slowed down and urged all parties to the project to re-dedicate themselves.

The North-South Corridor investment project was being led by the NEPAD Business Foundation; and sponsored by TFR and Grindrod (a shareholder in BBR). The project takes into account the current and future volumes, the infrastructure assessments, the funding requirements, and others. The NEPAD Business Foundation is in the process of appointing consultants to execute the outputs that the railway operators were unable to execute.

On the proposed pipeline from Ndola to Lusaka, Ms. Madikizela said this would be a public policy driven project which could be constructed along the ZRL corridor under a private-public-partnership (PPP) structure. The project would involve a local partner, ZRL and Transnet and did not require the Government of Zambia to raise or source any funds as financing would be raised by the PPP members.

She said the proposed multi-purpose fuel pipeline would be from Indeni Oil Refinery in Ndola to another terminal to be established in Lusaka.

Ms. Madikizela said the pipeline would be underground and made of appropriate material and envisaged to transport about 500 million litres of stock per year.

She said Government support would be needed as the bulk of the fuel to be transported would be inter-depot and belong to Government. Ms. Madikizela pointed out that revenue would be raised by charging fuel owners, who are the Government and oil marketing companies, a tariff for carrying the commodity.

“This is a huge project which, just as in the case of a similar project we have just finished between Durban and Johannesburg, will directly and indirectly create significant employment for Zambians both during and after construction.”

“This way of transporting fuel has several advantages which include reduced fuel cost for owners, it is safer compared to road tankers, there is reduced pressure on roads and above all it guarantees fuel security or availability in the country as the pipeline is complete with a depot which could contribute to increased fuel holding capacity in the southern region of Zambia,” she said.

His Excellency Mr. Mwamba said the Mission has written to the Ministry of Transport and Communications and proposed meetings with stakeholders in Zambia to be held between 15 and 19th November, 2015.

Mr. Mwamba said the proposed projects would help reduce the fuel pump price for the benefit of individuals and the business community in Zambia which he said would lead to economic growth.

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  1. They want to steal business from snoozing Zambians. Transnet should however be convincing their government to construct a pipeline between Luanda in Angola and Mafikeng in South Africa. A refinery can be constructed in the North West province to process this. How can South Africa be importing oil from Iran when there is Africa’s third largest producer in the neighbourhood? Dont we want intra-Africa trade?


  3. Although there is sense in this project but do we really the South Africans for this project?
    Mwamba’s name again…he will do anything for a kick back every where he goes.

  4. I hope the government and in particular Ministry of Transport and Communications does not take this proposal seriously. Transportation infrastructure for fuel between Ndola and Lusaka is not really a problem or indeed a priority in my opinion. What we need to focus on is having a pipeline that can deliver crude and fuel from our neighboring country Angola on a consistent basis coupled with an efficient and modernized Indeni Refinery that can meet the current fuel needs. In the absence of the above, this project would be a waste of resources and misplaced priority. What will be there to transport if Indeni can’t receive sufficient crude stock let alone process sufficient amount of it.

    • There’s already a project to build a pipeline from Angola to Zambia. And later a refinery to process the Angolan crude oil in Zambia.

      South Africans are such selfish xenophobes. Whenever they say they want to do you a favour, they probably want to seriously shady you. These are the same people who blocked Botswana from developing its Mamabula coal deposit to produce power by refusing to have an off take despite South Africa’s on-going power cuts. South Africa preferred to work on its Medupi project which up to now is still stuck. Please Zambians let us not be intimidated by these toy-toying Zulus. They can go and [email protected] themselves!


  6. Off the topic a bit. Why is Emmanuel Mwamba still referred to as ambassador designate? Didn’t he recently pose for photos with Jacob Zuma? I took it that was the day he presented his credentials. The photos were all over Facebook. Either the media is getting it wrong or there’s something wrong with the RSA diplomatic system. If he has not yet presented his credentials, then it was wrong for him to meet with President Zuma the way he did. Kaya

  7. Maybe let’s give these proposals a serious evaluation before write them off.
    On Zambia Railways, to me this is a shambles, the company does not seem to know where it is going or coming from, nor whether it is going anywhere at all. ZRL has no idea how huge the task of re-establishing the railway system nor what is involved. Just look at their priorities: re-furbishing and operating passenger trains between Ngwerere and Lusaka, ZRL is still a purely political project to give jobs to party cadres and very much looks at government for more funds when we cannot even see tangible benefits from the Euro Bond. And look back at Railway Systems of Zambia, where did you get those cow boys from? On the other hand, look at what Transnet is, what a success it is and what it does for the RSA economy…

  8. Let’s evaluate these proposals (pipeline and railways) and a suitable ownership structure but leave the management to Transnet, as Zambians have proved to be jokers, just look at that clueless Attanga, promised to regain his position as MD of ZRL if UPND came to power! What does he know about railways? Zero to minus! Complete myopic and pocket size thinking!

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