Lake Victoria Marine Transport

East Africa Region

eleQtra is working to improve the market for marine cargo transport in the Lake Victoria Region,

by bringing modern, purpose-built cargo vessels, logistics expertise and infrastructure to the Lake Victoria Region to enhance cargo transport services to customers.

The Lake Victoria Marine Transport (LVMT) Project entails the development and financing of a small fleet of purpose-built Roll On / Roll Off vessels that will offer freight services to customers in the region. Initial service will operate between Mwanza South Port in Tanzania, and Port Bell in Uganda.

eleQtra is developing the Project on behalf of InfraCo Africa.  Investment for the first vessel will be provided by InfraCo Africa and Grindrod group, who will also be the commercial services provider and ship’s agent to the project.

Primary Economic Benefits

  • The LVMT Project will provide new and purpose-built marine transport infrastructure to serve the Lake Victoria Region, improving productivity of the logistics chain, reducing the cost of imports, increasing the yield from exports and making possible exports and imports that were not previously feasible
  • The LVMT Project will enhance regional trade, increasing trade among Uganda, Tanzania and Kenya, enhancing regional cooperation and integration
  • The LVMT Project will increase the diversification of transport routes within the region, providing alternatives to the Northern Corridor

Primary Social Benefits

  • The Project will directly create over 30 highly-skilled jobs
  • As in the Kalangala Infrastructure Services Project, the Project will entail the training of crew in cooperation with the Dar es Salaam Maritime Institute (DMI) in Tanzania, enhancing badly-needed maritime skills in the region

Project Structure

  • The Project will be structured as a private company providing freight services to customers in the Lake Victoria Region
  • The Project will start by serving Mwanza and Kampala, and may expand to serve Kisumu, Bukoba, and other ports on Lake Victoria
  • Structure includes a $14.5mm equity investment by InfraCo Africa

Project Relevance

  • The Project will re-introduce scheduled service to Lake Victoria using specialized vessels – current marine service on the Lake is through short-term and ad hoc charters that sail only when the vessel is full and not on set schedules

Funding

  • EU-AITF has supported LVMT’s design and development, providing EUR2,000,000 in grant funding for feasibility studies around market assessment, technical definition and design, assessment of the legal and institutional framework, port infrastructure, shipping lanes and customs processes

Lake Victoria Marine Transport

East Africa Region

Sponsoring government ministries

Ministry of Works and Transport, Uganda
Ministry of Transport, Tanzania


Approximate scope of project

Project Sector: Transport - Ports, Waterways, & Shipping

Project Cost: US$ 25-30 million

Construction: 2021

Time: First vessel scheduled to commence revenue operation in 2023

Likely Cargo: cement, construction materials, iron and steel products, cotton seed cake, sugar, grains (wheat, rice, maize, millet), pulses, tobacco, bananas, cooking oil, soft drinks, soap, and household goods


Developer In Charge

John Opiro