Business
Petroleum Marketers Want Improved Rail System
The petroleum marketers have advised the
management of Nigerian Railway Corporation (NRC) to improve on the current
state of the rail system to make it easy to distribute products by the rail.
They gave the advice in telephone
interviews with our correspondent in Lagos.
Executive Secretary of Major Oil Marketers
Association of Nigeria (MOMAN) Mr Thomas Olawore, said that many issues should
be considered by the NRC before embarking on rail transportation of oil
products.
According to him, the marketers are willing
to patronise the NRC, but the current state of the rail system needed to be
improved on to make it attractive to marketers.
Olawore said that “they almost burnt their
fingers” six years ago when the association tried distributing petroleum
products by the rail.
“The last time we entered into such
transaction, we almost burnt our fingers, but we hope it will still get better.
“When the rail system is effectively back,
we will patronise it, but for now, we will not use the rail system,’’ the
marketer said.
He said that one of the major challenges
facing the rail system was poor services.
Olowore said that the major marketers like
Total, Mobil, Oando and Forte Oil would not enter into any fresh business
contracts with the NRC unless it was privatised.
He cited an experience of some members and
said that they had no plans to use the rail system for now.
“The corporation did not treat us as
business partners.
“Our experiences showed that the petroleum
products transported through the rail to the northern parts of the country
disappeared for about two weeks with our members recording losses,” he said.
According to him, MOMAN will only
reconsider its stand if the Federal Government could privatise the corporation.
Olawore, however, said the problems of oil
pipeline vandalism and high cost of moving products by road had made rail
haulage inevitable.
Mr Mike Osatuyi, Secretary of the
Independent Petroleum Marketers Association of Nigeria (IPMAN), said that
transportation of petroleum products by the rail was another green area that
should be developed.
Osatuyi said that the logistics, risks
associated with doing business with NRC and other challenges needed to be
critically addressed before embarking on distribution of petroleum products by
the rail.
“The association appreciates the importance
of distributing petroleum products by the rail, but the corporation is not just
ready for business,” he said.
The IPMAN scribe said that Oando had about
800 oil tanks and committed about N100 million to the distribution of the
products before the contract was terminated.