The Hague-based APM Terminals is pushing ahead with an ambitious project to build and operate a new deepsea port in Nigeria that will serve as a new maritime gateway for Lagos, the country’s premier city, and as a transhipment hub to the rest of West Africa.
APMT’s plan centres on Badagry, approximately 40 km west of Lagos. “We have identified the site and are in discussions on the acquisition of the land,” said APM T chief executive officer Africa and Middle East Peder Sondergaard.
The Hague-based APM Terminals is pushing ahead with an ambitious project to build and operate a new deepsea port in Nigeria that will serve as a new maritime gateway for Lagos, the country’s premier city, and as a transhipment hub to the rest of West Africa.
APMT’s plan centres on Badagry, approximately 40 km west of Lagos. “We have identified the site and are in discussions on the acquisition of the land,” said APM T chief executive officer Africa and Middle East Peder Sondergaard.
“We hope to be in a position to sign a concession agreement with the Nigerian Ports Authority early next year and then work on a detailed design and tender process for the project. I would hope that construction could start towards the end of 2013 and for the first phase to open during 2016.”
The first phase of this three-stage project will comprise a two-berth — 650 m with at least 14.5 m of water alongside — container terminal, capable of handling about 1m teu. It will also have dedicated space to process ro-ro and general cargo, an offshore support services centre and a small free zone.
“We have assembled a strong consortium that is made up of local and international companies and see this as a fantastic opportunity for Nigeria and the greater region,” Mr Sondergaard said.
This team comprises Terminal Investment Ltd, a company closely associated with the world’s second largest liner shipping company, Mediterranean Shipping Co; the Australia-based Macquarie Group; and locally headquartered oil and gas exploration/services companies Orlean Invest and Oando.
The consortium also has the support of the engineering consulting group Royal Haskoning DHV.
APMT has worked closely with TIL, as both companies are involved in Brasil Terminal Portuário being developed in Santos, Brazil.
Meanwhile, TIL has stepped up its operating presence in West Africa where it is involved in the Lomé International Container Terminal project in Togo. Recently, China Merchants International Holdings bought an equity stake in LICT.
“We are expanding our Apapa terminal but there is not enough room at the facility to accommodate the expected growth in trade, which I see as expanding in the 5%-10% range over the next few years,” said Mr Sondergaard.
”We are actively working with the NPA, the Lagos state government and the federal government and believe we have support at all levels. I really believe we will make this happen.”
Mr Sondergaard said that APM Terminals had evaluated the Lekki site but was put off by its poor hinterland connections. “The existing road connections to and from this site are via Victoria Island and the congested Lagos urban area, and bridges would need to be built across the lagoon to change this situation.
“In contrast, Badagry is located along the Benin-Lagos expressway which is being upgraded from a four-lane highway to a 10-lane one and we expect this to be completed by the opening date. It means our port will have direct access to a superior corridor for the northern and western states of Nigeria.”
APMT’s Badagry project is one of several in the area. Manila-based International Container Terminal Services Inc has signed a sub-concession agreement with the Nigerian Ports Authority to develop a port and integrated industrial/logistics zone at Lekki.
Lekki International Container Terminal Services is scheduled to be developed with 1.2 km of deep-draught quay and capability to handle 2.5m teu annually.
Nigeria has a pressing need for new container handling capacity as traffic levels in the country are expected to rise from some 1.6m teu this year to more than 2.5m teu in 2020.
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