In the next two years, the fuel pump prices in Uganda will substantially decrease if the $94m water transport project launched by Uganda’s President Yoweri Museveni in Mid-June becomes a reality, the Daily Monitor said.

President Museveni, while speaking at the groundbreaking ceremony for the construction of the fuel storage terminal at Bugiri-Bukasa in Wakiso District, said that transporting fuel using vessels (barges) on Lake Victoria from Kisumu to Kampala will help cut fuel costs by 50%, thus, it will also reduce the cost of doing business, All Africa informed.

Museveni stated that “investing in transporting fuel by water rather than the road, these people have already calculated their equation that they will use only 50 % of the costs spent on road.”

He noted that water transport is the cheapest means of transport, followed by rail transport, road and air transport.

Museveni added that the investor, Mahathi Infra Uganda Limited (MIUL) will build the ships at Bugiri-Bukasa, which will enable residents to acquire skills and employment.

“On land, we are working on the rail… We are also building dams to make the cost of electricity affordable, which will attract more investors,” he added.

Meanwhile, Mahathi Managing Director, Ravi Sankar Yandapalli, said that transporting fuel using water is much safer and will help reduce road traffic congestion.

The investment will include four ships with each transporting 4.4m liters of fuel. The ships and the terminal are expected to be ready by September 2018.