Engen has launched a Beira terminal in Mozambique.

The company says the new terminal is aimed at strategically boosting security of fuel supply and strengthening its supply chain in the region. Measuring 24 000m³, the terminal supplies petrol, diesel and lubricants to Mozambique’s main business hubs, as well as to other countries where the company has operations, including Zimbabwe.

“We’ve tested railway capabilities from Beira to Bulawayo in Zimbabwe and to Francistown in Botswana, which was very successful,” says Drikus Kotze, general manager of Engen’s International Business Division. “In essence, this means that we can take some pressure off of our Durban refinery and supply Botswana and Zimbabwe directly from our new depot.”

Teodomiro Sarmento, managing director of Engen Mozambique says the depot was commissioned to ensure the company meets its growth and future market share targets while establishing another supply corridor into Southern Africa.

“Having sufficient capacity in the region will reduce our dependence on third parties, lessen our cost of supply through the pipeline and improve efficiencies,” he says.

The company says fuel storage arrangements have been concluded with third parties in Maputo, Nacala and Beira while lubricants warehouses have been stationed in Maputo, Beira and Tete. It acquired Chevron assets, infrastructure and business in 2011 and operates a two million-litre depot at ICVL Benga coal mine, as well as a 500 000-litre bulk lubricants facility at the Vale Moatize coal mine.

The company has service stations in Maputo Province and Tete and is reportedly eying out Nacala and Pemba in the north of the country for future expansion. It says further capacity investments at the Beira depot are planned, in line with market demand.