Feb 4, 2023

Mawazo Writing Africa

Writing about the main

French logistics firm Bolloré bags $133m deal for crude oil pipeline

Local companies in Uganda and Tanzania will only play the supporting role in providing the transport and logistics services for the construction of the Hoima Tanga pipeline after oil giant TotalEnergies awarded the contract to French multinational Bolloré Logistics.< /p>< p>Bolloré’s media relations manager, Cindy Patan, declined to reveal the details of the deal, saying, “We have signed an NDA (non-disclosure agreement) with our client.” However, sources say that the French logistics giant is expanding the services within of the $133 million budget the company has offered.

The company announced on May 9 that it had been awarded a contract for “after an extensive and detailed bidding process.” the services of the Main Logistics Contractor (MCL) for the East African Crude Oil Pipeline (Eacop) project, the total cost of which is estimated at 5 billion in US dollars.

Industry sources familiar with the tender process have < em>Der Ostafrikaner that Bolloré has faced stiff competition from German companies DHL and Deugro, who are also bidding for the Logistics deal offered as soon as the tender was announced in 2018.

The sources said Local firms will only be subcontractors as the main contracts in the oil and gas industry will always go to the proven multinationals who have the capital and agility to mobilize the resources needed for the task.

The MCL contract scope includes end-to-end receiving, storage, handling and transportation of hundreds of thousands of cubic feet of cargo , including more than 80,000 connections of 18-meter line pipe, several heavy lift operations and significant breakbulk and containerized cargo movements.

Bolloré explained that the main logistics contract also includes d he provision of specially designed 18 meter trailers to deliver the steel fabricated line pipe to various sites throughout the length of the 1,443 km pipeline in Tanzania and Uganda.

< p>Since the construction of the pipeline Expected to start from Tanzania, the steel pipe will be imported into the country and transported to a coating plant in Nzega district where it will receive a thermal insulation coating, the company said.

The French logistics giant added that the transport of the total project cargo within the two countries will exceed 30 million truck-kilometres, under the strictest health, safety and environmental standards.

The Eacop Logistics con The contract will be awarded to Bolloré Logistics units in Europe and subsidiaries in Uganda and Tanzania, which will sail on the international delivery cycle to a number of charter vessels as well as existing global shipping mechanisms to deliver the project materials.

Bolloré will oversee the shipping, customs clearance and storage of construction materials and items from the various sources from which they will be shipped to the main project’s port of discharge in Dar es Salaam, Tanzania, and then transport them to several construction sites in Tanzania and Uganda.