DDG Logistics Details Major Rig Transport and Pipeline Work in East Africa
World Business Journal talks to DDG Logistics about the strategic advantages of merging five companies to improve their capacity for managing large-scale oil and gas projects with extended cash cycles, highlighting their increased expertise, ongoing successful projects, and the positive impact on operational experience and financial performance.
What key benefits does the merger of five companies into DDG offer in terms of market competitiveness?
Our competitive advantages stem from our human capital, which now includes nearly 500 employees. We leverage logistics expertise and international courier coordination from Daks Couriers, along with ICD management capabilities from our facilities in Mukono and Hoima.
DT Logistics enhances our tracking proficiency, while RI Distributors improves our operations between Mombasa and Kampala. RichFlo Lift Services contributes our leading lifting equipment. Collectively, we operate a significant fleet of around 400 trucks and 70 pieces of lifting equipment, supported by 200 acres of owned land for parking and servicing vehicles.
Our combined working capital strength allows us to serve large-scale projects with long cash cycles typical in logistics related to the oil and gas industry without compromising service quality and delivery schedules.
What were the primary challenges in relocating the LR8001 rig for CNOOC?
Clearing and transporting the LR8001 rig from Mombasa to Kingfisher in Kikuube within 30 days faced challenges such as managing a 50-page parking list for 350 truckloads, ensuring compliant trucks, and navigating customs, as this was Uganda’s first rig. Key best practices emerged, including clear stakeholder communication, early departures to avoid traffic, and using police escorts for safety.
We successfully delivered the rig on day 29 without breakages and continue to support drilling operations by transporting chemicals and waste.
What updates can you provide regarding your ongoing contracts in the oil and gas sector and the financial benefits you expect to see?
In our joint venture with AGL, we are transporting materials for McDermott in support of the Tilenga project. Over the past 24 months, we have successfully managed more than 2,000 trips, utilising 150 to 200 trucks daily to transport materials from Mombasa.
For the EACOP project in Uganda, our team and AGL oversee logistics, while EALS manages operations in Tanzania. The EACOP pipeline extends approximately 400 km from Buliisa to Mutukula. We have transported around 150 km of pipes and have set a target to complete delivery by March 30, 2026.
We anticipate that the pipeline will be delivered on schedule, with welding and burial completed by July 2026, in line with the timeline for the first oil delivery. We anticipate generating approximately $100M in revenue over the next 4-5 years, supported by a $50M investment in logistics capacity
