The Nigerian National Petroleum Corporation (NNPC) and Total Nigeria Plc are considering the movement of petroleum products through the rail system in other to reduce the cost of transportation.
This, they believed, is possible if plans by government to overhaul the rail sector becomes realistic. Speaking at the Oil Trading and Logistics Africa (Downstream) on Wednesday in Lagos, representatives of the two oil firms said the option remained viable to address some key challenges in the downstream sector and boost return on investment.
General Manager, NNPC Retail Limited, Finance and Account, Jumah Dansure, said the organisation is considering moving petroleum products through rail to free up the nation’s road network and mitigates challenges in the value-chain.
Dansure, who re-established the organisation’s commitment to standard and quality, also said the firm would tap into the recently launched speed limiter policy of the Federal Road Safety Corps (FRSC) to deal with over speeding among drivers and ensure proper monitoring of products.
General Manager, Sales and Marketing, Total Nigeria Plc, Adesua Adewole, who said transporting oil products through the rail was the best option, argued that it would become practicable if current rail projects in the country became operational.
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