Every Federal Government has recognised the pressure placed on the existing fuel storage infrastructure by the increased demand for diesel and aviation fuel and the ongoing risk to essential services due to poor reliability of fuel deliveries in the country side.

Each year the Government endorses budgets and corporate proposals to address the need for additional storage capacity for petrol, diesel and aviation fuel. The current fuel storage facilities (diesel, aviation fuel and petrol) were built based on historic demand prior to massive infrastructural development in housing, industries, transportation, agriculture, population expansion, tourism, humanitarian emergency, refugee settlement and immigration.

The increased activity, including sea, land and air transport components, has increased demand, (diesel and aviation fuel in particular). The ability to meet the current demand in order to maintain essential services and operations efficiently is limited by the current capacity of the fuel storage
infrastructure.

All fuel is delivered to Uganda a landlocked country via sea and finally road transport. Adverse conditions, particularly those prevalent during bad social and political climates, limit and often prevent delivery of this product. As a result of this, bulk deliveries of diesel and petrol are typically scheduled to occur just prior to and immediately following the bad social and political climates. The scheduled deliveries can be compromised due to variances and this is not good for investment from a business point of view.

Government has a responsibility to ensure that the operations and essential services is not limited by the current incapacity of the fuel storage infrastructure in the country.
The increased demand for petrol and diesel coupled with the static diesel/petrol storage capacity and the inability to deliver diesel/petrol to consumers during the bad social and political climates has placed pressures on the fuel stocks.
A few years in Uganda, the general public and commercial activities was operating at the limits of its fuel supply and the nation and its neighbours essential services were very nearly compromised. Had fuel supplies been any further depleted, power would have been initially rationed resulting in compromised amenity and then lost to all consumers in the nation and its neighbours.
In determining the required storage capacity, detailed analysis of historic and forecast usage rates, bulk delivery schedules and contingency periods was undertaken.

To meet the identified need, the government considered a range of options to maximise efficiencies and obtain best value for money. Key considerations in the development and appraisal of options included:
a) Opportunities to re-use existing infrastructure and storage assets;
b) Opportunities to co-locate and seek synergies in discharge from supply ships, infrastructure and storage assets;
c) Opportunities to maximise use of government owned infrastructure and storage assets; and
The Government manages the general supply of fuel in the country and maintenance of its associated infrastructure through an existing contract with International Petroleum companies such as Dutch Shell, Total, etc consolidated to manage the delivery of the works.
This Corporation are mandated to construct new Bulk Fuel Installation and to manage the general supply of fuel and maintenance of its associated infrastructure.

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Every Federal Government has recognised the pressure placed on the existing fuel storage infrastructure by the increased demand for diesel and aviation fuel and the ongoing risk to essential services due to poor reliability of fuel deliveries in the country side.

Each year the Government endorses budgets and corporate proposals to address the need for additional storage capacity for petrol, diesel and aviation fuel.

The current fuel storage facilities (diesel, aviation fuel and petrol) were built based on historic demand prior to massive infrastructural development in housing, industries, transportation, agriculture, population expansion, tourism, humanitarian emergency, refugee settlement and immigration. The increased activity, including sea, land and air transport components, has increased demand, (diesel and aviation fuel in particular). The ability to meet the current demand in order to maintain essential services and operations efficiently is limited by the current capacity of the fuel storage infrastructure.
All fuel is delivered to Uganda a landlocked country via sea and finally road transport. Adverse conditions, particularly those prevalent during bad social and political climates, limit and often prevent delivery of this product. As a result of this, bulk deliveries of diesel and petrol are typically scheduled to occur just prior to and immediately following the bad social and political climates. The scheduled deliveries can be compromised due to variances and this is not good for investment from a business point of view.