Oando Terminals Limited (OTL), the newest division of the Oando Group, is pioneering the construction of a jetty in Apapa, Lagos, that will provide a more efficient platform for product receipt to all marketers currently using the Moman facility.
The completion of the jetty, according to the company, is expected to vastly improve distribution efficiency and lead to higher margins with an estimated $36 million expected yearly in revenue.
The facility, which is nearing completion, will have a half-kilometer subsea pipeline, and a 16” 3 kilometre onshore line, capable of delivering over three million tonnes a year.
The infrastructure has been identified as an immensely valuable asset in the Oando stable as it will allow 45,000DWT vessels to berth and discharge their products without lightering and demurrage. The cost saving across the industry will be in excess of $120 million a year.
The company said in a statement yesterday, that once operational, the subsea marina jetty will contribute significantly to Oando’s overall net profit as a result of tolling fees and substantial cost savings on imports and demurrage, while ensuring an increase in the utilization of existing storage space, and the significant reduction of constant delays caused by infrastructure constraints in the Lagos area.
It added that despite a reduction in importation, Oando remains the largest indigenous supply and trading player in the sub-Saharan region and has a 15 per cent market share in Premium Motor Spirit importation.