Oil marketing company, Hashi Empex, has bought an oil terminal in Mombasa formerly owned by Agip. This comes at a time when the industry is facing the challenge of storage capacity at the Kipevu oil terminal in Mombasa. Expected to boost the efficiency levels in the product supply chain, the firm bought the 20 million-litre terminals at Sh800 million as part of its strategic business growth plans. “We anticipate that we will handle huge consignments of oil products to service our businesses locally and the Great Lakes region and need adequate storage facilities,” said Ahmed Hashi, the chief executive officer of the firm.
Recently, the country has been experiencing fuel shortage that has been linked to various factors among them capacity constraints. This has led to a number of companies blaming government agencies for lack of transparency in storage allocation at Mombasa. In addition to the oil terminal investment, the firm has also signalled intentions roll out service stations in all major urban centres in Kenya.
Currently Hashi Empex is involved in the export business from Kenya to other countries like Rwanda and Uganda. Apart from improving the terminals at Changamwe, the firm will also invest part of the money to establish a new LPG bottling plant. This is expected to be fully operational during the second quarter of this year according to Mr Hashi. He was speaking in Mombasa during a tour of the terminal.
The depot is linked to Kenya Petroleum Refineries Limited, which would enables the marketer to get fuel products delivered faster to them.
This is also expected to enhance efficiency in the company’s supply chain.
“This direct connection to the refinery will enable us turn around customer orders faster and enjoy efficiencies across our business”, said Mr Hashi.
The firm has also begun acquisition of pump stations in urban areas in readiness for their retail services.
