Dear Comrade Afetsi Awoonor,

Advancing BOST’s Mandate for a Sustainable and Efficient Energy Future

Congratulations once again on your well-deserved appointment as the Managing Director of the Bulk Oil Storage and Transportation Company Limited (BOST). Your role comes with immense responsibility as BOST stands as a pillar of Ghana’s energy security and economic stability. I wish you every success as you embark on this important journey.

In light of the strategic importance of BOST, I humbly offer the following recommendations to support your efforts to enhance the company’s efficiency, reduce operational costs, and achieve long-term sustainability.

 A. Enhancing Procurement Strategies

BOST’s mandate to ensure a reliable and cost-effective supply of petroleum products can benefit from leveraging localized resources. Procuring Bonny Light Crude Oil (BLCO) for processing at local refineries—such as Sentuo—will not only reduce reliance on imported finished petroleum products but also lower overall costs.

However, recognizing challenges in securing a steady BLCO supply, it is vital to develop a secondary strategy for acquiring finished products to maintain uninterrupted supply chains. This approach will ensure energy security while optimizing costs.

B. Consolidating the “Zonalization” Policy for Government Benefits

Strengthening and consolidating the National Petroleum Authority’s (NPA) “zonalization” policy for the distribution of refined petroleum products will bring significant benefits to the government, including:

          1.       Reducing the financial strain on the Unified Petroleum Price Fund (UPPF).

          2.       Maintaining healthy stock reserves.

          3.       Ensuring consistent nationwide supply of refined petroleum products.

I strongly recommend the creation of a new zone (depot) in the Volta Region to serve Volta, Oti, and neighboring areas, in addition to the six (6) existing zones (depots): Accra Plains, Mami Water, Akosombo, Kumasi, Buipe, and Bolgatanga. Collaboration with the National Petroleum Authority (NPA) will be crucial in achieving this objective.

The Keta Constituency, my beloved constituency, is well-positioned to host this new depot; however, Ketu North also stands out as a strategic and viable alternative for consideration.

Your appointment, alongside the presence of our comrade at the NPA, offers a unique opportunity to deliver transformative benefits to our region.

C. Optimizing Transportation through Rail and Pipelines *

The continued reliance on Bulk Road Vehicles (BRVs) for transporting petroleum products is both costly and unsustainable. BOST can lead a transition to more efficient alternatives by prioritizing rail and pipeline networks. Key projects to consider include:

 1. Pipeline Infrastructure Development:

Reviving the Accra Plains–Mami Water–Akosombo Pipeline to reduce transportation costs significantly. Addressing encroachment and operational deficiencies is crucial for its reactivation.

Fully utilizing the Debre–Bolga Pipeline by ensuring adequate stock levels at the Debre and Buipe depots. This will also position Ghana as a major exporter of petroleum products to Burkina Faso, Mali, and Niger.

 2. Collaboration with the Volta Lake Transport Company (VLTC):

Partnering with VLTC through Build-Operate-Transfer (BOT) arrangements to secure funding for barges and tugboats will strengthen waterway transportation.

 3. Rail Petroleum Bullet Coaches:

Revisit the idea of rail bullet coaches for petroleum transport, securing funding through BOT arrangements to improve cost-efficiency.

 D. Building Local Capacity and Investing in Technology

As a national institution, BOST must foster the development of local expertise. Transitioning from reliance on external contractors, such as Nigeria’s TSL, to managing terminals locally will empower Ghanaians and build domestic capacity.

Additionally, adopting advanced stock management software will improve product security, address discrepancies, and restore confidence among stakeholders.

Comrade Awoonor, these recommendations represent opportunities for BOST to redefine its role in Ghana’s energy sector and serve as a model of efficiency and innovation. Your expertise and commitment to excellence place you in an ideal position to drive this transformation.

Please be assured of my support and readiness to collaborate as you navigate this critical responsibility. Together, we can build a resilient and sustainable energy future for Ghana.

Wishing you every success in this endeavor.