This year, the Bulk Oil Storage and Transportation (BOST) Company Limited will invest over GH200 million in a series of initiatives to assist the petroleum industry modernise.
The investment, which will begin with purchase this quarter, will also improve the efficiency of petroleum product transportation both inside the nation and for export.
All of the company’s depots will be automated and upgraded as part of the projects, bringing them up to contemporary standards and increasing efficiency.
Tema in the Greater Accra Region, Buipe in the Gonja District in the Savanna Region, Kumasi, the Ashanti Regional city, and Bolgatanga, the Upper East Regional capital, are the locations of the six depots.
The remainder are in the Eastern Region, at Akosombo and the famed Maame Water Depot near Adome.
“These projects are expected to create jobs for private sector players while also protecting Ghana’s highways from deterioration as a result of heavy-duty trucks transporting fuel products from Accra to Kumasi,” BOST’s Chief Executive Officer (CEO), Mr Edwin Provencal, told the Daily Graphic in an exclusive interview.
Courtesy
That was after he paid a courtesy call on the Daily Graphic’s Editor, Mr Kobby Asmah, in Accra last Wednesday to brief him and the Editorial team on what BOST was doing to make the national strategic petroleum product distributor one of Ghana’s most lucrative and efficient public entities.
Mr. Kobby Asmah (left), the Daily Graphic’s Editor, explains the article selection process to Mr. Edwin Provencal, BOST’s CEO. DOUGLAS ANANE-FRIMPONG PHOTO
Mr Provencal added, “We’ll start this quarter; we’ll start with the procurement procedures this quarter to guarantee that we obtain the proper firms to assist us upgrade and automate our depots.”
“Despite our accomplishments, we still believe that in order to be more competitive, we need to go full-fledged automation,” he continued.
He also said that BOST will most likely be involved in the provision of liquefied petroleum gas (LPG) throughout the nation.
“We will construct an LPG plant wherever we have a depot to assist with the shift from fossil fuel to gas, in accordance with climate action plans and the President’s initiative on clean fuels,” he added.
AfCFTA
BOST will use the African Continental Free Trade Area (AfCFTA) to conduct a lot of business with neighboring nations offshore, according to Mr Provencal, in order to use every possibility to make the firm more important on the continent.
“We are pleased to report that the National Petroleum Authority (NPA) is playing a crucial role in ensuring that an organizational strategy is in place so that trucks do not have to go all the way from Burkina Faso and Mali to Accra to pick up petroleum.”
“When they do that, our roads are destroyed, and our societal costs rise. So, if the NPA can help us adopt that organizational philosophy, we’ll be able to save money on our roads,” he said.
He said that BOST was committed to working with the NPA to eliminate any illegal trade and product adulteration in order to preserve product quality.
monetary performance
Mr Provencal said he took over an organization with a $624 million debt hanging around its neck when he took over the corporation five years ago.
In addition, he claimed, there was a GH284 million domestic legacy debt on the books.
The company’s transportation assets, including transmission pipes and barges, were thereafter completely out of operation, he claimed.
“Basically, we were dangling on a rope, and then you’re expected to act,” he said.
Despite the fact that the task seemed to be unachievable, the BOST CEO said that management, the board of directors, and the workforce were committed to turn things around.
“At this time, all of our maritime assets are operational and producing revenue for the firm.” We have operating pipelines, particularly the one linking Buipe and Bolga, and all but one of our terminals are operational, allowing us to export to neighboring countries,” he added.
According to Mr Provencal, the firm produced roughly GH10 million profit before tax in the 2020 audited statements.
Last year, he added, the projection was for a profit of about GH30 million before taxes.
Interventions are welcomed.
Mr. Asmah praised the present BOST administration’s assistance, describing it as “extremely constructive” and “quite helpful” in sustaining the firm.
He believes that if BOST is approached correctly and managed effectively, it would be in a far better position to play its proper role in the country’s growth.
Mr. Asmah committed GCGL’s assistance for BOST’s efforts to overcome its early hurdles, which included antiquated machinery, weak capitalization, and fuel adulteration, all of which exacerbated the company’s financial situation.
Furthermore, Mr. Asmah said that the fact that BOST was employing the same people resource to turn around the firm was extremely promising.
He urged them not to rest on their laurels, but to push even harder to make BOST more internationally competitive.
Processes involving news
Mr. Asmah used the chance to explain the news procedures and selection to the BOST CEO and his staff, emphasizing the group’s commitment to greater professional, integrity, and verification standards.
He said that the group’s work ethic is based on truth and honesty every day, and that this is what has made the company’s numerous brands “must read and retain.”