APM Terminals banks on highway widening, sets sight on Lagos box shop

HAGUE-based APM Terminals is moving ahead with its plan to build and operate a new one-million-TEU deep sea container terminal in Nigeria to serve as a maritime gateway to Lagos and offer transshipment services to West Africa.

The group's plan is focussed on Badagry, which is located 40 kilometres west of Lagos. "We have identified the site and are in discussions on the acquisition of the land," said APMT Africa-Mideast CEO Peder Sondergaard, reported London's Containerisation International.

"We hope to be in a position to sign a concession agreement with the Nigerian Ports Authority (NPA) 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 part of the three-stage project is a two-berth 650-metre quay with 14.5 metres alongside, capable of handling one million TEU a year. It will also have dedicated facilities for processing ro-ro and general cargo.

"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," said Mr Sondergaard.

This team comprises Terminal Investment Limited (TIL) - a company closely associated with Mediterranean Shipping Company, the Macquarie Group and locally-based oil and gas exploration/services companies Orlean Invest and Oando. The consortium also has the support of Royal Haskoning DHV, the engineering consulting group.

Meanwhile, TIL has been boosting its operating presence in West Africa where it is involved in the Lome International Container Terminal (LICT) project in Togo. Recently, Hong Kong-listed China Merchants International Holdings acquired an equity stake in LICT.

"We are expanding our Apapa terminal but there is not enough room at that facility to accommodate the expected growth in trade which I see as expanding in the five per cent to 10 per cent range over the next few years," said Mr Sondergaard.

He said that APM Terminals had evaluated the Lekki site but was deterred by the poorer hinterland connections. "The existing road connections to/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," he said.

"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."

At the same time Manila-based International Container Terminal Services Inc (ICTSI) has signed a sub-concession agreement with the Nigerian Ports Authority to develop a similar port and integrated industrial/logistics zone at Lekki.

Named the, Lekki International Container Terminal Services (LICTS), the facility will be developed with 1.2-kilometre long quay, this facility should handle 2.5 million TEU annually.

Experts forecast that container volumes in Nigeria will increase from 1.6 million TEU this year to 2.5 million TEU by 2020, creating a pressing need for new ocean freight terminals, said the CI report.