Dar es Salaam. The future of Dar es Salaam Port’s business looks bright after the facility was selected by Uganda and Bahrain’s petroleum products importers.
Uganda claimed last week that the new import structure was kept in the dark because Kenya entered into intergovernmental agreements with the UAE and the Kingdom of Saudi Arabia without consulting its neighbours.
Uganda’s Minister of Minerals and Energy, Dr. Nankabirwa Ssentamu, said that representatives of his ministry and the Uganda National Oil Company (UNOC) announced that Kenya’s decision to enter into the Gulf Agreement was confirmed during a meeting with Kenyan oil market players. He reportedly said that he had abandoned Uganda’s interests. Supply is fragile, exposing the public to high pump prices.
As a result, the Ugandan government and Bahrain-based company Vitol Bahrain EC Company have selected Dar es Salaam Port as the gateway for importing petroleum products. Experts said yesterday that the decision, with immediate effect, underlines the growing importance of Dar es Salaam Port as a vital hub of regional commerce and further strengthens efforts to foster economic ties between the two countries. Stated.
They said the move will ensure a stable supply of oil to Uganda and the wider East African region, confirming the country’s growing reputation as a reliable partner in the region.
“This choice is an opportunity for multinational companies like Vitol to increase the attractiveness of the outlet. This development will not only enhance the status of the port, but also strengthen our economic prospects,” said University of Dodoma (Udom) ) economist Dr. Emma Mwambe said.
The Port of Dar es Salaam has undergone significant improvement and expansion efforts in recent years, making it an attractive destination for international trade.
“This will make the port a preferred gateway for imports and exports in the East African region,” said logistics expert Ahmed Hassan. He added that this choice would not only strengthen the role of the port but also establish Tanzania as a regional trade hub.
Vitol EC Company is a strong player in global energy trade, with revenues expected to reach $505 billion by 2022. Securing oil distribution licenses in Uganda has been approved by UNOC.
Uganda currently imports 90% of its fuel through Kenya, which Kenya claims has canceled the transparent and competitive open bidding system for the Gulf deal without consultation.
“UNOC and Vitol Bahrain EC have agreed to a five-year agreement, and this partnership will provide the necessary financial support for oil operations. It will secure capacity and promote healthy competition in the pricing of petroleum products,” Dr. Sentamu said.