In a strategic move to optimize logistics and reduce costs, Dangote Refinery has announced plans to transport 75% of its local petroleum product supply via sea routes. The refinery, the largest single-train facility globally, aims to leverage its sea export options to ease pressure on road infrastructure and cut transshipment costs.
Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, revealed the plan while speaking with Arise News, citing the refinery’s capacity to load 83% of its products by road. However, Edwin emphasized the benefits of sea transportation, stating that products bound for key locations like Warri, Port Harcourt, and Calabar will primarily move by sea.
“We have both exporting facilities by sea and by road. 75% of the production can be evacuated through sea. In fact, now we are ramping up to make it even 100%,” Edwin explained.
The shift to sea transport is expected to significantly reduce costs and ultimately lower prices for consumers. Products destined for central Nigeria will be shipped from Port Harcourt and Warri, while those for the East and Northeast will be moved from Calabar.
To mitigate potential traffic issues along the Lekki-Epe corridor, the Lagos State Government has implemented measures, including equipping the Lagos State Traffic Management Authority (LASTMA) with advanced tow trucks and emergency services.
Additionally, the electronic call-up (e-call-up) system will be activated on the Lekki-Epe corridor from September 23, 2024, to tackle congestion caused by articulated trucks.
It bears mentioning that Dangote Refinery’s strategic move to sea transportation shows its commitment to efficiency and cost-effectiveness, poised to benefit consumers and stakeholders alike.
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Key Highlights:
– Dangote Refinery to transport 75% of local petroleum supply via sea routes
- Sea transportation to reduce costs and ease pressure on road infrastructure
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Products bound for Warri, Port Harcourt, and Calabar to move primarily by sea
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Lagos State Government implements measures to mitigate traffic issues.
It remains to be seen how things pan out from here on out.
