TotalEnergies has awarded the a contract for the main logistics contractor (MLC) services for the East African Crude Oil Pipeline (Eacop) project, to French multinational, Bollore Logistics.
Local firms in Uganda and Tanzania will, therefore, only play the support role.
Bollore Logistics will deliver the services within the budget of $133 million, which the company bid.
The scope of the MLC contract includes end-to-end receiving, storage, handling and transportation of cargo, including more than 80,000 joints of 18-metre line-pipe, multiple heavy-lift operations, and significant break-bulk and containerised cargo transportation.
The contract also includes provision of 18-metre trailers to deliver the steel-made line-pipe to the multiple locations across the whole stretch of the 1,443km-long pipeline within Uganda and Tanzania.
Bolloré Logistics will further oversee shipping, clearing and storage of construction materials and items from sources where they are imported to the main project discharge port in Dar es Salaam, Tanzania, and thereafter, transport them to multiple worksite locations in Uganda and Tanzania.
The EACOP is projected to cost around $3.5 billion, with about $2.5 billion being debt borrowed from banks and other financiers. At the same time, 30% of the project will be financed through equity from Total, CNOOC and the host governments’ entities: Tanzania Pipeline Development Company, and Uganda National Oil Company.