STATEMENT OF PURPOSE: The purpose of this Company Profile as the case is with all Company Profiles is to give an insight to our clients and other stake holders an insight into our operations and the dynamics thereof. The Company Profile also attempts to show that the Association and its members have the potential and are indeed currently able to generate high levels of Sales (Currently in the region of K90,000,000 Per Annum) with potential for further growth, and that they are able to grow capacity to meet the demand for fuel transportation in Zambia.
Zambia is strategically located in the distribution of fuel. Because we are landlocked,
TAZAMA PIPELINES LIMITED pumps crude oil from a single mooring point at the port of Dar-EsSalaam in Tanzania (about 1,700Km away) via a pipeline to INDENI Refinery which is the only refinery in the country. The refinery produces Petrol, Diesel, Paraffin (both Domestic and Industrial), Jet A1 fuel, Heavy fuel oil and Liquid Petroleum Gas (LPG) -both Butane and Propane.
The daily production capacity of the Indeni Refinery is 2,400,000ltrs while the daily national demand is 5,000,000ltrs a day. Because of this deficiency in production, the Government of Zambia imports the remaining 2,600,000ltrs by both road and rail transport from Dar-essalaam in Tanzania, Beira in Mozambique, Durban in South Africa and Mutare in Zimbabwe. The only way to increase production is to build another refinery or to lay another pipeline from Angola to Zambia. But projects would cost a lot of money in millions of United States dollars and would take more than five years from start to completion even if the funds were to be found. For this reason alone, road transportation will continue for many years to come hence the need for PTAZ members to grow their fleet in order to manage the ever growing demand for fuel and its ancillary services.
Local transporters although able to distribute fuel from Indeni throughout the country, have no adequate capacity to transport all the fuel that the country requires from all these places mentioned above into the country. Notwithstanding, the Government of the republic of Zambia through the Zambia Public Procurement Authority (ZPPA) has given 20% of the Total Volume to be imported for Local Transporters to haul. The Contracts are to be managed by the Petroleum Transporters Association of Zambia (PTAZ). This is in an effort to help grow capacity in the local transporters, a percentage which it intends to grow to 50% local participation in the next few months. To be able to execute the contract, local transporters need to increase their fleet of Tankers hence the need for this business plan.
The Mission of PTAZ is to help local transporters to benefit fully from the distribution of fuel in Zambia and all other participants in the transportation of imported fuel as evidenced by the increase in volume from the minimum of 20% to 50% of all imported fuel.
Keys to success for the Association will include:
i. Maintaining a reputable and untarnished reputation in the industry.
ii. Quality care to the Association’s customers.
iii. Competitive pricing.
iv. Flexible hours of operation.
v. Extensive knowledge of the industry.