IPT, Total launch
Import, storage, fleet to be shared
Issa Petrol Trade (IPT) and Total Liban jointly formed Fuel Logistics, a company specialized in the provision of logistics services and the supply of petroleum products.
The new company will import around 900,000 tons of fuel per year, which is about 20 percent of the market’s demand, according to Total.
Previously, IPT and Total Liban intermittently imported fuel on a yearly contractual basis. Toni Issa, Vice-Chairman of IPT said: “We are going to work together to strengthen our capacities. In the future, the company plans to also serve other companies operating in the field.”
Daniel Alvarez, Managing Director of Total Liban said: “We are going to search for the best possible prices in a more organized manner. We are also going to run our facilities, optimize the use of storage spaces, and renovate and share our fleets.”
Shares in Fuel Logistics are equally held by both companies. Fuel Logistics has a LL30 million capital. “It is the minimum required capital to start with because we do not need immediately to undertake investments.
The company’s board is formed of six members, three from each company. It is chaired by Zakhia Issa, who is also the Commercial Director at IPT and managed by Antoine Salameh.
Total Liban has a network of 190 gas stations and storage capacity of 47,000 cubic meters (m3). IPT’s network includes 180 stations and 30,000 m3 in storage capacity. Combined their storage market share is 14 percent. The two companies will also share their fleets. IPT has 47 trucks. Total has 15 trucks and deals with eight independent transporters for a total of 54 trucks.
Reported by Yassmine Alieh
Date Posted: Apr 30, 2019