Namcor opens first fuel depot at Otjiwarongo

NAMCOR, the National Petroleum Corporation of Namibia, has entered the fuel distribution industry with the opening of its first fuel depot at Otjiwarongo.

Since 2003, Namcor has focused primarily on its mandate to provide 50 per cent of the country’s fuel needs through the importation of fuel, exploration and production with strategic ‘upstream’ partners. With the opening of the depot, the State-owned enterprise is adding to its infrastructural development plans that include coastal storage and inland depots. It is also marking the beginning of its entry into the distribution and marketing of petroleum products, through commercial markets, dealer-owned retail sites and rural fuel projects.Speaking at the inauguration of the depot on Tuesday, Namcor Chairperson Siseho Simasiku said the depot would be the first of many, with others set to be built in Windhoek, at Katima Mulilo, Keetmanshoop, Lüderitz, Ondangwa, Gobabis and Walvis Bay over the next three to five years.Simasiku said Namcor should be seen as a new competitor in the market.’There is no intention by Namcor to monopolise or to manipulate the market. Namcor will approach the market on a competitive basis and will not abuse its role or status as a State-owned enterprise in order to gain market share,’ he said.Legislation would ensure that the industry in managed in such a way that things remain fair and transparent, he added.’Namcor has become a full-fledged player in the downstream sector and I invite the Namibian public to investigate what Namcor offers, and to make an informed decision on where you buy your next tank of fuel,’ Simasiku said.The total cost of the Otjiwarongo depot – including Namcor’s 2008 acquisition and renovation of the disused depot and the land on which it is situated – came to N$23 million, and was completed in 10 months. According to Namcor, the depot – which is expected to employ 10 permanent staff and security guards – is fully automated, allowing the company to view storage tank levels and transactions from its head office in Windhoek. It has eight large tanks, each with an 83 000 litre capacity, and complies with all relevant environmental and safety standards.Namcor Managing Director Sam Beukes told The Namibian that the Otjiwarongo depot, which caters to vehicles (including trains) taking a minimum of 200 litres of fuel, would also reach out to the area’s farming community with its farm tank facility.He added that the Otjiwarongo depot, and another one planned for Katima Mulilo, would kick-start possible exports to Zambia and the DRC.Beukes said each depot would have a planned lifespan of 30 years.Mines and Energy Minister Erkki Nghimtina described the development of fuel depots around the country as both strategic and commercial.He added that Namcor’s move into fuel distribution would ensure security of fuel supply and would ensure that Namibians in rural areas have continuous access to fuel.nangula@namibian.com.na