Apparently on the strength of its huge investments which runs into many Billions of Naira, Port and Cargo Handling Services has pleaded for an extension of its lease period from the present 10 years to at least 20 years, or even 25 years.
In what appeared as the first indication from the fold of the terminal operators that they may not be able to recoup their investments within the lease period, Port and Cargo which operates terminal ‘C’ declared last week at the commissioning of two additional cargo handling equipment that it would require more time to be able to break even.
The new cargo handling equipment are LHM 400 Mobile Habour Cranes. This brings to four the number of the hi- tech cargo handler that company now deploys at its Tin Can Island Terminal.
Shipping Position Weekly confirmed that the four cost a whopping =N=US$2.5Billion; an investment which the company’s general manager in charge of off dock operations, Dr Phil Ofulue describes as coming too often. He stated that in addition to massive infrastructural development, the company presently has a fleet of 15 new trucks, with plans to acquire about 40 additional trucks before the end of the year.
According to him, the reality of the huge post concession investments is such that there would be need to plead with all the relevant agencies for the lease agreement to be tinkered with such that the company can now have 20 years or even 25 years.
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Of all the concessionaires operating in Lagos port, Port and Cargo Handling Company and two others have a lease agreement of 10 years. Others have between 15 years and 25 years.
In the league of terminal operators with a 10- year lease agreement are ENL Consortium which reportedly paid about US$79,080,960 for terminals ‘C’ and ‘D’ at the Lagos Port Complex, Josephdam Nigeria Limited which was said to have paid about US$ 22,513,697Million for Terminal ‘A’ at Tin Can Island Port for 10 years;
Similarly, for about US$164,980,800 Million in a 10 year lease agreement, Port and Cargo Handling Company took over terminal ‘C at Tin Can Island port.
Ofulue explained that apart from the investments in the hi tech cranes, the company has also committed a lot of money into infrastructures and other equipment that will make cargo handling faster. These are in addition to the newly constructed one-stop customs building which according to him has provision for all terminal services. ‘In this customs house, we have a bank, the billing department.
“It is obvious that we can not recoup all these investments in the remaining eight years of our lese contract and once again, we want to use this medium to appeal to the federal government, BPE, NPA, House committees on maritime and privatisation and other stakeholders to review and extend our concession agreement to between 20 years and 25 years”, Ofulue had appealed at the terminals quay side while receiving the cranes last week.
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