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JOHANNESBURG. – THE recent launch of the Beira Terminal in Mozambique is poised to strategically boost the energy supply chain in the Southern African Development Community (SADC) region.

Following the launch, Engen, a leading African energy multinational, has significantly increased its supply capacity to a number of countries in the sub-region. The 24 000m³ Beira Terminal will supply petrol, diesel and lubricants to the main hubs in Mozambique, as well as to other countries in Southern Africa where Engen has operations.

“We’ve tested railway capabilities from Beira to Bulawayo in Zimbabwe and to Francistown in Botswana, which was very successful. In essence this means that we can take some pressure off of our Durban Refinery and supply Botswana and Zimbabwe directly from our new depot,” said Mr Drikus Kotze, General Manager of Engen’s International Business Division.

Mr Kotze said the investment reaffirmed Engen’s strong commitment to the Mozambican market and the African continent.

“Where others have dis-invested in search of more profitable upstream opportunities elsewhere, Engen has invested extensively in these regions, supplying infrastructure, harnessing local skills and business partnerships, and giving back to the communities in which we operate,” said Mr Kotze.

Mr Teodomiro Sarmento, Managing Director of Engen Mozambique, said the depot’s strategic value is to “ensure we meet our growth and future market share targets and to establish another supply corridor into Southern Africa.

“This will ensure security of supply for Engen’s operations there. Having sufficient capacity in the region will reduce our dependency on third parties, lessen our cost of supply through pipeline, and improve efficiencies,” said Mr Sarmento.

Mr Sarmento said further investments are planned in future to increase the depot capacity in line with market demand. Engen started operations in Mozambique in 1996.

Over the past 19 years, the firm has built up a retail network and a diverse portfolio of commercial customers, including global mining giants Vale do Rio Doce and Rio Tinto, which has since sold its operations to International Coal Ventures Ltd (ICVL), an Indian company.

Currently, Engen’s operations cover the main hubs in the three geographic regions of Mozambique.

The company also operates service stations from Maputo Province in the south to Tete in the Centre.

Expansion plans will cover growth areas, in northern Mozambique, particularly in Nacala and Pemba, and the main corridors. – CAJ News.