Excitement surrounding the recent discoveries in the Rovuma Basin is warranted. However, given that both Mozambique and Tanzania suffer from limited infrastructure that threatens to stunt the industry's growth, caution is also required. No sector is better positioned to enjoy the benefits of the gas boom while at the same time understanding the difficulties that come with limited infrastructure than logistics companies.
Looking to take advantage of the new opportunities in the gas industry, Bravo Logistics has been aggressive in capitalizing on its enviable position as a domestic logistics company. "Oil and gas is now a potential area. The good thing is that we now have something happening at home after all our work in other countries; we can see this positioning us well," said Ngalula.
Ngalula believes that Tanzania's gas sector is bound to hit roadblocks if the government does not step up its efforts to upgrade the country's infrastructure. "The Tanzanian government is encouraging infrastructure investment, but it is moving slower than we expected. After the gas discoveries, this year a very small budget was allocated for Mtwara port. Heavy equipment, which could go directly there, still has to be taken by road from Dar Es Salaam."
![rovuma sthomas](http://admin.oilandgasinvestor.com/Library/Magazine/2012/11-November/Images/rovuma_sthomas.jpg)
Slade Thomas, chief executive officer, Starlite Aviation Group
Another Tanzanian logistics company, which has recently made inroads into the industry through its work with the TPDC, is Sino Logistics. Like Bravo, the company has aspirations to grow rapidly but has been constrained by forces outside of its control. "Our oil and gas clients have been very pleased with the services we have provided for them. Nevertheless, we are at times unable to keep up with demand due to the limited infrastructure we find at our ports and roads," explained Innocent Swai, managing director of the company.
In spite of the challenges it faces, Sino Logistics has plans to increase business in the oil and gas industry by more than 50% in 2013. "Winning the TPDC contract was a monumental step for the development of our business. We hope to build upon this success, expanding our client base in the months to come," said Swai.
Although Tanzania is often assumed to be far ahead of its southern counterpart in terms of its infrastructural capabilities, recent efforts by the Mozambican government are closing the gap. "The Mozambican government has declared an infrastructure policy for 2012 to 2015, all based on Public-Private Partnerships (PPP), and it seems to be working already. Included are railways, toll roads, ports and airports. It will be the same for coal and LNG. The government is not expecting to be an operator in these projects, but it will not be a silent partner. It will want to take part. All processes are Build Operate Transfer (BOT) or Build Own Operate Transfer (BOOT): there will be a return at the end of the period," said Pedro Couto, partner, CGA.
In order to assist with the effort to explore the remote Rovuma Basin, South African helicopter transport company Star-lite Aviation is providing its services to E&P clients throughout East and Southern Africa. "Our affordable, multi-task service fills a niche in the helicopter contracts market, which the larger players ignore or cannot fulfill. We see East Africa and the emerging markets of Southern Africa as the most important part of our growth strategy in the oil and gas industry. We have identified the five frontier countries—Kenya, Tanzania, Mozambique, South Africa and Namibia—as our focus for growth," said Slade Thomas, CEO.
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