SA’s Transnet proposes to establish fuel pipeline from Ndola to Lsk

South Africa’s Transnet has proposed to establish a multi-purpose fuel pipeline from Ndola to Lusaka which will help Zambia reduce its fuel pump price, among other benefits.

Transnet has also offered, on terms that could be agreed on later, to pass on to Zambia Railways Limited (ZRL) its railway fuel tankers that it previously used to transport fuel stocks between Durban and Johannesburg.

This follows Transnet’s completion of a 20 billion rand pipeline between Johannesburg and Durban.

The projects came to light when Zambia’s High Commissioner-Designate to South Africa, Emmanuel Mwamba met Indeni Chairperson Johnstone Chikwanda, Transnet Executive Manager for International Business Nyameka Madikizela and Commercial Manager in charge of private sector participation Maggie Tsholetsane at his office in Pretoria yesterday.

Ms. Madikizela said Zambia had strategic resources and its location was attractive to Transnet in as far as the logistics supply chain and rail transportation of imports and exports through South African ports was concerned.

She said the proposed pipeline from Ndola to Lusaka would be a public policy driven project which could be constructed along the ZRL corridor under a private-public-partnership (PPP) structure.

She explained that the project would involve a local partner, ZRL and Transnet and did not require the Government of Zambia to raise or source any funds as financing would be raised by the PPP members.

She said the proposed multi-purpose fuel pipeline would be from Indeni Oil Refinery in Ndola to another terminal to be established in Lusaka.

Ms. Madikizela said the pipeline would be underground and made of appropriate material and envisaged to transport about 500 million litres of stock per year.

She said Government support would be needed as the bulk of the fuel to be transported would be inter-depot and belong to Government.

Ms. Madikizela pointed out that revenue would be raised by charging fuel owners, who are the Government and oil marketing companies, a tariff for carrying the commodity.

And Zambia’s High Commissioner designate to South Africa Emmanuel Mwamba said the Mission has written to the Ministry of Transport and Communications and proposed meetings with stakeholders in Zambia to be held between 15 and 19th November, 2015.

Mr. Mwamba said the proposed projects would help reduce the fuel pump price for the benefit of individuals and the business community in Zambia which he said would lead to economic growth.

This is contained in a statement issued to QFM News by Press Secretary at Zambia’s mission to South Africa Nicky Shabolyo.