Hassan Magulumali
The Uganda National Oil Company (UNOC) has officially announced the commencement of using the Port of Dar es Salaam for the loading and transportation of oil to Uganda. This move follows new agreements reached on May 24-25, 2024, during the Second Uganda-Tanzania Business Forum held in Dar es Salaam.
Previously, UNOC relied on the Port of Mombasa in Kenya for oil loading and transportation via the Kenya Pipeline Company (KPC). However, due to technical changes and increased transportation costs through Mombasa, Uganda has opted to shift to Dar es Salaam as an alternative route.
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According to a statement from UNOC’s CEO, Proscovia Nabbanja, Uganda plans to transport approximately 36 million liters of oil monthly, equivalent to 1,028 truckloads. The first batch of 18 million liters, equal to 520 truckloads, started loading this week in Dar es Salaam and is expected to arrive in Kampala soon.
“Uganda plans to transport approximately 36 million liters of oil every month (equivalent to 1,028 truckloads) through the Port of Dar es Salaam,” stated the UNOC announcement, signed by its CEO, Proscovia Nabbanja.
However, UNOC indicated that this volume is expected to increase over time.
“The first batch of 18 million liters (equivalent to 520 truckloads) of oil began loading this week in Dar es Salaam and will arrive in Kampala in the coming days,” the statement added.
These new agreements reflect the joint efforts of the two countries to improve infrastructure and transportation routes for oil and other essential goods. During the forum, Tanzania’s Deputy Prime Minister and Minister of Energy, Dr. Doto Biteko, emphasized that the agreements aim to strengthen the economic relationship between Tanzania and Uganda. He added that this move would also enhance regional cooperation and accelerate economic growth in the East African region.
Uganda’s shift to using the Port of Dar es Salaam is part of a broader strategy to secure more efficient and cost-effective oil transportation routes, given the vital importance of this commodity to Uganda’s economy.
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