Companies in construction and logistics are been urged to take advantage of the opportunities bound to emerge in the oil and gas development phase as the East African region prepares for production.
According to oil and gas consultant and former managing director at National Oil Mary Mukinda the development phase will see an increase in demand for the transportation and road infrastructure as millions of tones of equipment are ferried from the ports inland.
Total Uganda which is awaiting a production license for example estimates that it will need to move over 800000 tonnes of equipment as it starts development at Hoima which would mean about 1000 trucks a day during the period in both Kenyan and Ugandan road.
The oil pipeline on the Kenyan side is also expected to require the transportation of over three million tones of equipment.
“There is immense opportunity for anyone looking for where to invest in the sector and surely construction and transport offer a mammoth chance. Surely for these bulk equipment to be transported government will need to expand their roads or we can foresee congestion in future,” says Mukinda.
It is currently expected that the main routes of transportation will be through the Mombasa port through to Eldoret using rail while road will be the dominant means from Eldoret to South Lokichar where the first phase of the project is expected.
“While the road from Mombasa to Eldoret and Kitale is in favorable condition the A1 road to Turkana will however require urgent upgrades,” she adds.
Currently she acknowledges that clearance times at the Mombasa port have improved while construction at the new Lamu port and the expansion of the Jomo Kenyatta airport will prepare the country to better handle the situation.
Other opportunities she urges Kenyans to take advantage of include need for accommodation, power generation, water and waste management as well as warehousing and the supply of consumables.
According to Mukinda the country will at the peak of the development phase require 8000 units to accommodate workers in the sector with a low of 3000 units as the phase nears completion.
“This said investors and regional states must pursue local content with broader view of regional basis rather than on a country perspective,” she added.
She was speaking at the 4th Oil and Gas expo and exhibition that is ongoing in Nairobi.