An integrated Angolan logistics company

Angola

Fred Silva, group administrator of Navilog Group, talks to The Energy Year about the importance of the Barra do Dande project for the company, the progress in its relationships with IOCs, its partnership with Sea Titan and the potential challenges for its growth strategy. Navilog Group is an integrated logistics and freight services provider.

How important is the Barra do Dande (TOBD) project for Navilog?
The Barra do Dande project holds great significance for both Angola’s development and Navilog as a company. We are honoured to be part of such a landmark national initiative. In the initial phase, we have supplied five barges and three tugboats to support maritime construction. We are also in discussions to participate in the next phase. Our performance has surpassed expectations, and we have quickly adapted to the project’s scale.
In a significant development, Navilog was chosen to transport 34 bullet tank containers for natural gas liquids (NGLs), each weighing 400 tonnes, between Sonils and TOBD, totalling 13,600 tonnes. This sea operation demanded exceptional expertise and precision, navigating complex marine routes and ensuring safe equipment handling. The participation and technical expertise of Mammoet and the OECI heavy-lift engineering department were crucial in ensuring the success of this transport. Despite the challenges, Navilog’s adept management of the operation, supported by all of the teams involved, highlights our commitment to excellence and our capability to handle high-stakes logistics operations efficiently.
This project is a significant milestone for us in building our expertise. However, we do face challenges, such as a limited market for spare parts for boats and marine equipment, which makes us reliant on imports and increases operational costs. Despite these challenges, participating in large contracts like this is a learning curve and requires adjustments. We are working alongside major players and expanding our horizons.

How do you expect the company’s relationship with IOCs to progress?
We have started providing services for TotalEnergies, including the transportation of samples to overseas labs for Gas Research Institute (GRI) analysis. Although it’s not as large a contract as we would like, it’s a start. We have been building a relationship with Total Energies for the past three years, and now we have succeeded. Even though it’s not an exclusive contract, we strive to provide excellent service to maintain open doors for future collaborations.
In 2022, we brought in equipment for TotalEnergies E&P to certify some of their rigs, and this project concluded in May 2023. They have since reached out to us for additional services, creating new opportunities to expand and increase our visibility.

What is your assessment of Navilog’s partnership with Sea Titan?
Our partnership with Sea Titan began with a joint venture specifically for the Barra do Dande project. We have grown significantly as partners on this project. We are looking into developing our shipping department; although we have a licence, it has not been our primary focus. We have been more engaged in oil and gas logistics, but our next chapter will involve expanding into the general logistics market while simultaneously growing our fleet.

What are the potential challenges to your growth strategy?
The greatest challenge in Angola is manpower – it is difficult to find capable people and to retain employees after investing in their training to the required level of expertise. Protecting the knowledge of our operations is also a concern, as there isn’t a strong business confidentiality culture in Angola. Another significant challenge is the impact of internal politics. New agencies and regulations can emerge unexpectedly, causing constraints in our business development and making it difficult to plan and forecast for the future.

What upcoming projects is Navilog most interested in?
We are interested in participating in the Cabinda, Lobito and Soyo refineries. Logistics in Cabinda can be quite tricky, with most equipment needing to be imported from abroad, which involves prolonged Customs clearances and authorisation processes. Despite these challenges, we are satisfied with our current growth. Our participation in the Barra do Dande operations has enabled us to further grow our business with IOCs.
We intend to observe the market to assess additional opportunities. Some projects we hear about do not materialise, and this risk must be considered in any investment decision. In five years, I foresee Navilog growing larger and more stable. We aim to achieve significant growth by maintaining our strategy, developing sustainable projects, and possibly collaborating with Sonangol and other major players. However, we plan to ensure our growth is risk-assessed and that we achieve all our objectives.

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