(Ecofin Agency) – The activities of the Nigerian National Petroleum Corporation already create significant truck flows on the road network. The situation could become untenable if the Aliko Dangote refinery does not consider alternatives to the road for its freight.
Nigeria’s Dangote Refinery plans to base its supply and distribution policy on sea transport instead of road transport, the vice president of the oil and gas division, Devakumar Edwin, told local media recently.
He said the company intends to transport 75 per cent of its local supply of petroleum products through this route, with Warri, Port Harcourt, Calabar and other ports as hubs. This solution, he said, would reduce pressure on the road network and reduce transportation costs.
“After the 75% target, we will be able to move up a gear to reach 100%. We have the possibility to load 83% of the production by road, but we can avoid all the traffic jams by evacuating by sea, which will also reduce the cost of transhipment” he explained.
The strategy comes as the refinery ramps up its volumes, particularly with the recently launched production of gasoline for the domestic market. With an estimated daily capacity of around 650,000 barrels, the unit is expected to supply cargo for over 2,900 tanker trucks, adding to congestion on Nigeria’s already congested roads.
With the vandalism of pipelines in Nigeria, road transport has become the main option for transporting oil, which among other things causes the premature deterioration of infrastructure. The transport solution chosen by Dangote Refinery could give new impetus to local maritime transport that the government would like to promote and make competitive with foreign multinationals.
Henoc Dossa
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