Kenya positions itself for the oil transportation business

Following recent major discoveries of oil in the East Africa region Kenya is already positioning itself as an important player in the oil transportation business.

The country is investing in a number of infrastructure including a standard gauge railway, roads, pipeline and a modern seaport in Lamu that will ensure it stands out from its competitors.

Among Kenya’s potential clients include Uganda, South Sudan and Ethiopia all of which are landlocked with all except the latter having vast oil reserves.

South Sudan on its part has been using the Northern pipelines that traverse through Sudan though there have been bad relations between the two at one time resulting in a cessation of exports through Khartoum.

Uganda on its part is still in the preparation stages of oil production with the construction of a refinery and an oil pipeline from the distiller to be located at Hoima still at the planning stages.

The position taken by Kenya became more apparent yesterday during the reading of the country’s 2014-15 budget statement by finance cabinet secretary Henry Rotich who stated a number of projects that the country will be embarking on during this financial year.

“Through a Private Public Partnership,, we are investing in a regional crude oil pipeline as part of the strategic positioning for the oil transportation business. We will, also under PPP framework,, develop the transport components of the Lamu Port and Southern Sudan-Ethiopia Transport (LAPSSET) Corridor Project,” he said.

In the budget the cabinet secretary also stated that Kenya will be investing in a first class transport and logistics network to reduce the cost of doing business, improve productivity and enhance our overall competitiveness as a country.

To this end the upgrade the road and railway infrastructure the minister set aside 140 billion shillings the single largest allocation after security.