Kenya Pipeline Company (KPC) has on Tuesday said it had signed a Sh1.7 billion deal with local marine engineering firm Southern Engineering Company (SECO) for the construction of the Kisumu oil jetty.
The local marine engineering company emerged the winner in a competitive process that involved six local and foreign bidders. KPC had invited companies to tender for construction of the Kisumu oil jetty.
Upon completion the jetty will boost the pipeline’s position in the region as the leading oil transporter and turn Kisumu into a focal point of oil and gas trade in the region making it one of the busiest inland ports in Africa-Joe Sang
SECO will commence the construction this month and is set to complete the venture within six months. A flagship company of Alpha Group’s marine division, SECO has been in operation for 60 years.
Joe Sang who is managing director of KPC noted that upon completion the jetty will boost the pipeline’s position in the region as the leading oil transporter and turn Kisumu into a focal point of oil and gas trade in the region making it one of the busiest inland ports in Africa.
The oil jetty’s target market will be around the lake and expanding the export market into Uganda and mines in northern Tanzania.
“The jetty has been made possible following the completion of the new Sinendet-Kisumu pipeline,” Sang said.
“The line has enhanced petroleum product availability in western Kenya and the export market of Uganda, Eastern DRC, Rwanda, Burundi and Northern Tanzania.”
The pipeline, KPC says, has increased product flow to Kisumu depot to 350,000 litres per hour from the previous 110,000 litres per hour.
“KPC remains focused on becoming a major regional player supporting regional growth by lowering the cost of doing business.”
In April Kenya Pipeline Company announced that it had recorded a 20 percent growth in export volumes since introducing a new tariff for transit products.The pipeline company introduced a 30% discount on all transit products in all its Western Kenya depots in a move to reclaim its regional market