Low volumes delay Namcor/TransNamib deal

CHAMWE KAIRA

The Memorandum of Understanding signed between Namcor and TransNamib on September 6, 2021 for the transportation of lubricants has not commenced yet because of the lower volumes.

“Regarding the quantity of petroleum and lubricant products transported by Namcor since the agreement was signed, we have not yet commenced the transportation of lubricants with TransNamib. This is due to lower volumes, and our strong client relationships allow us to deliver lubricants directly to our customers,” said Paulo Coelho, Manager of Marketing, Communication and Public Relations at Namcor.

However, Coelho, said in terms of ULP and Diesel, for the year 2023, Namcor +have successfully transported a total of 3,881 net tonnes in collaboration with TransNamib.

“As for deliveries to specific locations, yes, Namcor has been delivering bulk fuel products (Diesel and ULP95) to Namcor Otjiwarongo depot. This decision is based on the safety and efficiency offered by our rail network for transporting bulk fuel products.”

Coelho said regarding the provision mentioned in the MOU for the transportation of over 3,600 tonnes of petroleum products per month, while the MOU does stipulate this provision, it’s important to note that Namcor’s actual volumes have been slightly lower than the figure.

The deal between Namcor and TransNamib was meant to enable rail transport of various petroleum and lubricant products throughout Namibia and into neighbouring countries.

The agreement was meant to create the opportunity to increase capacity for both entities through the development of petroleum storage facilities that will enhance the road-to-rail network strategy.

TransNamib had availed key strategic locations to Namcor for this project to allow for efficient and effective transportation and delivery of product. The key operational locations included the TransNamib premises in Otjiwarongo, Walvis Bay and Grootfontein.

Related Posts