- Over 130 million litres of diesel to be supplied in Kenya and Uganda over 3 years
- 65pc increase in RVR’s annual fuel consumption following addition of 25 locomotives
Hass Petroleum Limited, a major regional oil marketer and distributer has won a sh385 billion ($148 million) tender to supply diesel to rail operator Rif Valley Railways over the next three years.
Under the agreement Hass Petroleum will provide RVR with an estimated 130 million litres of automotive gas oil (diesel) over a period of three years (the equivalent of over 4,300 fuel tank loads) toRVR’s keyoperational centersin Uganda and Kenya.
Hass Petroleum was awarded the contract after edging out five other large regional oil marketers and distributors.
Speaking at the contract signing ceremony at RVR’s offices, RVR’s chief executive officer Carlos Andrade said: “The 20 American-built locomotives we are acquiring over the next five months in addition to the five we’re refurbishing locally will double our cargo haulage capacity and increase our diesel consumption needs by 65 per cent this year alone.”
He said diesel consumption is expected to rise each year of the contract period with further increases in the locomotive fleet.
Mr. Abdirizak Ahmed, Kenya Country Manager of Hass Petroleum said: “We are happy indeed to have won this contract emerging with the best bid amongst our peers. This is yet another major milestone by Hass Petroleum Group and not only does it articulate the strength and market position of Hass Petroleum but is also shows the confidence Rift Valley Railways has in working with Hass Petroleum. We are confident that we shall continue to dominate our industry’s landscape with a greater footprint than we have had before.”
A service level agreement requires Hass Petroleum to manage fuel facilities and ensure minimum stock levels in RVR’s operational hubs of Kampala and Tororo, and in Changamwe, Eldoret and Nairobi in Kenya.