Fuelling Malawi’s Economy Using Railway Transport: Nacala Logistics Revolutionises Energy Distribution by Transporting Fuel via Railways
In recent months, Nacala Logistics has made significant strides in improving the quality of rail freight services from the Port of Nacala to Malawi and Zambia. The company has been transporting fertiliser to Malawi and Zambia, as well as general containers, export pulses, salt, soap noodles, and wheat grain, solidifying its position as a key player in the development of the economies of Mozambique, Malawi, and Zambia.
Over the past few years, the company has transported an average of 10 million litres of fuel per month for Petroleum Importers Limited (PIL) in Malawi and Petromoc for the Moatize mine operations in the Tete province of Mozambique.
However, a breakthrough in fuel transport was achieved in July of this year. A strategic meeting was held at Nacala Port, Mozambique, attended by representatives from the National Oil Company of Malawi (NOCMA), Malawi Energy and Transport Ministries, Petromoc, and Nacala Logistics. The decision was made to begin transporting fuel from Nacala port to Malawi by rail. This pivotal move aimed to improve the cost and fuel supply in Malawi, capitalising on the superb railway transportation services provided by Nacala Logistics. This has reduced transit times from Nacala Port from an average of five days to just two days (48hrs) and has upped the monthly transport capacity to 100,000 tonnes.
Following the signing of a rail transport agreement earlier this year between NOCMA (January 2023) and Nacala Logistics, and a letter of intent from the Malawi Energy Ministry signed earlier this month (August 2023), both parties committed to transporting an initial volume of 16 million litres of fuel per month. This exemplifies the unwavering commitment of all stakeholders to address the rising demand. Consequently, Nacala Logistics will increase its average transport from 10 million litres of fuel per month to 26 million litres, a notable advancement for both the company and the Malawian economy.
On 10th August, NOCMA officially approached Nacala Logistics, requesting approximately 2.4 million litres of diesel. In a swift and efficient response, Nacala Logistics mobilised its resources, loading the first batch of 1.1 million litres of diesel by 12th August. This initial consignment, which left Nacala Port for Malawi on 13th August, was received by NOCMA on 14th August, surpassing the expectations of both NOCMA and other Malawian government officials. The second batch for NOCMA, containing 1.15 million litres, was delivered on 18th August 2023. Another order of 900,000 litres was placed by PIL, with the completion of loading set for 18th August 2023, and the train’s departure and arrival in Blantyre scheduled for the same day, 20th August 2023.
Driven to exceed customer satisfaction, especially at a time when Malawi grapples with fuel supply challenges evident by long queues at fuelling stations across the country, Nacala Logistics has prioritised the circulation of fuel trains and will persist in ensuring timely deliveries.
It’s noteworthy that, before this initiative, NOCMA had imported and transported all fuel into Malawi via road trucks from Beira and Dar es Salaam. This marks the first time that state-owned NOCMA has imported and transported fuel by rail from Nacala Port – a significant achievement for both Nacala Logistics and the Malawian economy.
Kennedy Kwerani, the Marketing and Commercial Manager of Nacala Logistics, stated that, for Nacala Logistics, the fuel business isn’t seasonal, unlike some other commodities transported by rail. This ensures a steady flow of traffic all year round. For NOCMA, PIL, and the wider Malawian economy, Nacala Port offers a dependable and competitive logistics route for fuel supply. The high train capacity and shorter transit times ensure that larger fuel quantities are transported to Malawi in fewer trips, reducing congestion and streamlining logistics, thus optimising fuel distribution in Malawi.
“It’s also a strategic move to prolong the lifespan of our roads and decrease road maintenance costs by moving more fuel by rail, allowing road trucks to distribute locally from the fuel tank farms of NOCMA and PIL to the final fuelling stations,” added Kwerani.
As we progress, Nacala Logistics remains deeply committed to the pursuit of excellence, envisioning a future where energy transportation is not only efficient and competitive but also a catalyst for economic development.