Zambia should consider reverting to the old system of sourcing petroleum products through the southern route so as to make use of the railway system which is cheaper and more reliable.
Former deputy minister of Energy Charles Zulu said oil marketing companies (OMCs) should consider using the railways to ferry fuel into the country because it is more cost-effective than road transport.
Zambia currently procures the bulk of her refined products by road via Dar es Salaam and this has been blamed, together with the use of middlemen, for the escalating costs of the pump price in the country. Before UDI in the then Rhodesia, when the country’s fuel stocks were delivered by rail through the southern route, Zambian motorists could buy petrol at K2 per litre.
Speaking to the Daily Nation yesterday, Mr. Zulu said rail transport was best as it would enable oil companies to transport fuel at a reduced cost compared to what they were currently incurring.
“While the OMCs ferrying fuel into the country have preferred to be using road, there is a much cheaper mode of transporting the commodity which is by railway and if they can utilise it, the costs they are incurring will drastically reduce which will make them cost-effective,” Mr. Zulu said.
“However, the decision lies in their hands because Government is now not actively involved in the oil procurement process which has solely been left with the private sector while the State concentrates on formulating policies aimed at smoothening the operations of the sector through its regulatory role.”
Mr Zulu said Government’s policy direction in the oil procurement will help revamp the sub-sector and reduce the price of fuel in the long-run, adding that the decision by Government to allow private players in the sector was long overdue and will address some of the challenges that Government encountered form time to time.
“When you look at the 2017 Budget, you realise that the role of Government is just to regulate the sector as OMCs will take a leading role in the importation and supply of fuel in the country and this is a plus on the part of Government.”
[Zambia Daily Nation]
Before UDI! my foot! You forget that then the K2 was equal to the Pound. It means the price now at about a Pound is the same bwana advisor. Thanks anyway. Next!
It’s a good idea:infact it would give Tazara and Zambia railways reliable business.This will take a bold leader to implement.Its not nececssary to be giving so much business to foreign transporters at the expense of our economy.I hope some one is listening.This is a business I personally understand and I believe this is workable.Ba PF if you need help let us know.Not even Mutati can advise you on this one.Thanks.
Mutati is half-baked. He has no idea on turning round Zambia’s economy. His running off onto privatization of our assets is criminal because he has not employed first class managers in all these entities. Why dish out good assets due to the fact that his government has no good working brain? Why not ring-fence these companies against political interference and then recruit across the continent for the best minds to run these companies for Zambians who have been admittedly denied good education as proven by our rampant nepotism and tribalism?
Zambians have the brains, but the get rich quickly syndrome has overpowered them.
Imwe naimwe ideas like this require hard work by Lungu and his ministers. They are incapable of doing any work were there are no bribes to be had.
Only a dutiful selfless cabinet working for zambia can deliver that ,not the current one that only seem to put an effort when they are getting business and bribes for their private companies from the luxury of tax payer funded air conditioned SUVS
everything should move by fast Rail..not only Fuel. Maize, Copper, Tobbaco, Sugar.. everything must move by Fast Rail.
You have chewed EUROBOND that was meant for upgrading the track…the professor had a brillant idea of completely improving the tracks using Zambian made concrete sleepers but you kicked him out and hired a jealous PS Atanga who shared the loot with ministers proxy companies…and imported rail line sleepers all the way from China.
Shipping by rail will save on damage to roads and road deaths with trucks. Plus its just cheaper by rail and jobs for Zambians not Tanzanians like it is now.
Brilliant idea ba zulu.rail is cheap,convenient and also loads in bulk at a go.these are nice measures to restate our already gone economy,save our expensive
$1000 per km roads and also maybe give jobs to zambians,but my prayer is that this will not be seen on the negative way by some selfish masters who go by the idea only when they have some interests in it on the expense of the poor zambian pipo.
The best brains are certainly NOT the POLITICALLY APPOINTED MINISTERS. They are in THE PRIVATE SECTOR both IN ZAMBIA and OUTSIDE I.E EXPATRIATES. OMCs are not political appointee’s but business people’s private companies. Simple. The president of Zambia is NOT a businessman but a politician surrounded by job-seeking, self preserving cadres. They are AFRAID of him. Mind you, HE FIRES anyone who dares use their brains to think outside the political box-“COLLECTIVE RESPONSIBILTY”. REMEMBER WHAT MILES SAMPA said about this last year when he left PF? There are many expatriates AND Zambians successfully running and managing foreign funded NGOs in Zambia.THESE are ignored by the appoining authority i.e the president because they are NOT CADRES
What happened to the Dar-es-salaam to Ndola refinery pipeline…??????
Semi refined products Kersosene,Regular and Premier petrol and Diesel were piped for final refinement at this facility. It was owned by A consortium of foreign petrol companies operating service stations in Zambia who financed this operation just after UDI and was monitored by the Govt N.P.C.
So what happened ??????
Kambwili will go after it if you don’t act quickly. Remember he is looking for money now kikikikiki.
I had mentioned before that Tazama and Indeni had long gone become useful given the current political disposition. It is irrelevant to continue with unproductive methods of yesteryears.