The managing director of the Bulk Oil Storage and Transportation Company Limited (BOST), Edwin Provencal, has stated that the company is now prepared to take advantage of the African Continental Free Trade Area (AfCFTA) after revitalizing its revenue-generating infrastructure.
Provencal, during a recent appearance on the #PatrioticSpaces of Twitter, discussed the company’s success story since he took over.
Provencal revealed that, at the time of his appointment, BOST was heavily burdened with debt due to years of managerial inefficiencies, with only 18% of its revenue-generating assets operational.
The pipelines connecting Tema to Akosombo and Buipe to Bolga were out of service, as were the company’s marine infrastructure, including its tug and floating boats. 50% of the company’s depots were also not working.
To turn the company around, Provencal began with a thorough evaluation of its books and infrastructural health. He then devolved two key strategies, generated through the implementation of a “balance scorecard framework”.
The strategy was focused on enhancing operational excellence by reviving all dead assets, completing old projects, and aggressively growing the business. The company was also rebranded, and a new corporate culture was established based on performance.
As a result of implementing these strategies over the past five years, BOST has been able to pay off almost 98% of its US$624 million trade liability debt and 100% of its GHC416 million legacy debt.
The company has also saved US$26 million after a forensic audit showed it owed US$11 million, not US$37 million, to the claimants.
Provencal and his team have since repaired the company’s pipelines and 12 of the 15 tanks that had been decommissioned, leading to a remarkable turnaround for the company. After 11 years of losses, BOST recorded a profit after tax of GHC168.8 million last year.
The managing director states that almost 90% of the company’s infrastructure is now back online, and it is ready to take advantage of the AfCFTA to provide value to Ghanaians.