The National Petroleum Corporation of Namibia (Namcor) is weighing the possibility of expanding its fuel retail business outside Namibia, as it continues with an aggressive expansion plan targeting 33 operational sites by the end of 2024.
Namcor which entered the fuel retail sector in August 2019 with the opening of its first branded site at the Hosea Kutako International Airport, currently has 8 operational sites in operation and a further 5 under construction and development across the country.
“Namcor will continue to serve the nation by way of its expansion strategy which will see the opening of retail sites in strategic locations across Namibia, and potentially in neighbouring countries too,” Namcor Spokesperson Utaara Hoveka said in response to an inquiry from The Brief.
The government owned company, said the entry of the company into the retail space and the on-going retail role out, was inline with the company’s mandate.
“The company is responsible for operationalising the interests of the Government of the Republic of Namibia in the entire oil and gas value chain, ranging from upstream activities which is the exploration of oil and gas in the country and downstream operations which is the sale of petroleum products – which includes the fuel retail market,” Hoveka said.
On the projected cost of the retail rollout and how the company was funding it, Hoveka was tighlipped.
“We are not at liberty to disclose financial information pertaining to our investment in the retail agenda,” he said.
This comes as the company inked a signed a 5-year, rail transport agreement with TransNamib, a deal which will see more of its petroleum products moved by rail.
“NAMCOR uses a combination of road and rail transportation for the distribution of fuel to its depots and customers. Each has its own advantages, with rail being generally safer and cost effective. A key advantage of the rail transportation is its flexibility, with it operating 24 hours a day. This enables products to reach our customers and depots faster,” Hoveka said.
The agreement Transmit which will see over 3,600 tonnes of petroleum products moved per month, also allows Namcor access to TransNamib’s petroleum storage facilities.
“TransNamib has availed key strategic locations to Namcor for this project to allow for efficient and effective transportation and delivery of product. The key operational locations include the TransNamib premises in Otjiwarongo, Walvis Bay and Grootfontein, with the option of adding more sites, should the need arise,” he said.
Namibia’s fuel retail sector is currently dominated by the likes of Puma, Shell, Engine and Total.
Puma which has a network of 61 service stations in the country, is targeting 5 more before yearend.
