Western Cape Business News

Send  Share  RSS  Twitter  14 Nov 2010

PETROCHEMICALS: New Cape Fuel Depot Frees Engen


Recent Western Cape Business News

ENGEN’s major new fuel depot in Montague Gardens combines state-of-the-art and re-commissioned facilities to end the company’s dependency on competitors and vastly improve customer service in the region.

Five years after starting construction of a major new fuel depot in Montague Gardens, Engen is now ready to can its dependency on the storage facilities of nearby Chevron and BP altogether.

Since it kicked off in 2005, a total of 34 000 cubic metres of storage capacity has come online through the project, with 30 000 cubic metres more expected by January 2011. The sheer scale of the project necessitated its rollout over four phases, says Jeeva Chetty, Engen’s national operations manager.

Chetty says with the benefit of having its own storage tanks, Engen no longer has to contend with hours of lost time waiting at other companies’ bulk truck loading bays, which until recently it shared with Chevron, Total and third-party customers. It also cuts out much of the logistical problems experienced by suppliers.

The company has also installed sophisticated inventory management systems, meaning it is always sure of the amount of stock it’s carrying, resulting in better stock replenishment and slicker logistics. All of this has greatly improved its customer service and competitive standing.

Engen in the Cape has always been and continues to be supplied by its refinery in Durban, Chevron Refinery in Milnerton, BP’s depot in Montague Gardens, as well as overland via rail. While supply routes won’t change, it is the fact of Engen’s control over its own volumes that will now make the difference, says Chetty.

It has obviously necessitated more operational staff, but as it’s also allowed us to grow our business by being more competitive,” he says. The total storage capacity of Engen’s Cape Town depot is expected to cater for its business needs to approximately 2020.

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