Revival of Rail Transport: A Game-Changer for Malawi’s Fuel Industry

Revival of Rail Transport: A Game-Changer for Malawi’s Fuel Industry

The recent inauguration of the block train carrying fuel from Nacala Port to Lilongwe marks a significant milestone in Malawi’s transportation history. After a 21-year hiatus, the revival of rail transport is poised to transform the fuel industry, bringing numerous benefits to the country.

The block train, operated by Central East African Railways and Nacala Logistics, has reduced transportation costs and improved fuel availability. With the capacity to carry 640,000 liters of fuel, the train will make regular trips from Nacala in Mozambique to Lilongwe, covering a total distance of 988 kilometers.

According to NOCMA CEO, Clement Kanyama, the restoration of rail services will bring about efficiency in fuel transportation, ensuring speedy delivery of goods across the country. According to the CEO, there are many benefits of hauling fuel by rail. Some of these include:

  • Reduced transportation costs: Rail transport is more cost-effective than road transport, resulting in lower fuel prices for consumers.
  • Improved fuel availability: Regular deliveries of fuel will ensure a steady supply, reducing the risk of fuel shortages.
  • Increased efficiency: Rail transport is faster and more reliable than road transport, ensuring timely delivery of goods.
  • Boost to industries: The improved transportation access will stimulate economic growth, benefiting various industries, including agriculture, tourism, and mining.
  • Environmental benefits: Rail transport is a more environmentally friendly option, reducing carbon emissions and minimizing the country’s carbon footprint.

At NOCMA’s Matindi Depot in Blantyre, 23 million liters of fuel had been delivered between August 2023 and June 2024.

By December 2023, NOCMA had increased the volume of fuel hauled via rail transport to 11.4 percent from 0 percent in 2020. The company intends to reach 30 Percent in the next few months.

Stock availability Despite Fuel Crisis

Stock availability Despite Fuel Crisis

“There is availability of stocks in the country’s strategic fuel reserves and we are importing more despite challenges that have undermined our importation capacity like forex shortages among other reasons.

By close of business today, the situation will greatly improve.

There is therefore no need to panic”

Joint MERA and NOCMA Press Briefing.

(BADEA) board has approved a $50 million Fuel

(BADEA) board has approved a $50 million Fuel

The Arab Bank for Economic Development in Africa (BADEA) board has approved a $50million Fuel financing revolving facility for NOCMA.

NOCMA will use the first tranche of $50m towards immediate procurement of fuel product towards replenishment of the strategic fuel reserves stocks once all the relevant paperwork is finalized.

This fuel financing facility agreement is between NOCMA and BADEA with Government as a guarantor through the Ministry of Finance. This means NOCMA will be fully responsible in directly servicing the facility.

This will allow NOCMA to channel some of the financing sourced from local banks towards addressing the current fuel shortages in the Country.

Approximately $28million will go directly towards daily fuel requirements, as the company works to address the fuel supply shortages recently experienced in the Country.

Operations towards restoring the fuel supply situation in the country are already underway.

High volumes of fuel product are entering the country on a daily basis, which has seen reduced queues at filling stations across the country.

NOCMA Attends MDF Sports Festival

NOCMA Attends MDF Sports Festival

National Oil Company of Malawi NOCMA has today joined over 850 soldiers from across the country who are competing in 24 sports disciplines at this year’s Malawi Defense Force MDF Sports Festival at Malawi Armed Defense Forces College MAFCO in Salima.
Speaking when he officially opened the Festival this morning, MDF Commander General thanked all the corporate companies including NOCMA for making this year’s festival possible through sponsorship.
NOCMA has supported the event with K5 million.
Apart from sponsoring the event, NOCMA has sent two teams that will play exhibition matches in football and netball on Wednesday 25th May 2022.
The Festival ends on Friday.

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