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Seaport projects in West Africa are overshadowed by uncertainties

THE majority of port projects across West Africa are now in uncertain waters owing to a change in the location and nature of transshipment hubs serving the region, according to recent reports by shipping consultancy firm, Drewry.

The report stated two major greenfield projects in Lagos, (Lekki and Badagry ports) have been impacted by the sharp drop in Nigerian container traffic over the last couple of years.

It added that overall regional activity has decreased by 13 per cent since 2014, while oil-based economies have experienced even greater declines such as Angola (down 50 per cent) and Nigeria (down 30 per cent), reported UK's The Guardian.

Drewry was cited as saying: "In the long run, major new port projects will make sense, although it is unlikely that all the proposed projects can succeed." As the region's largest port market, Nigeria had attracted two substantial new port projects in Lekki and Badagry.

Originally scheduled to be operational in 2016, Lekki was backed by ICTSI and CMA CGM, but ICTSI announced its exit from the project, citing "delays in execution," while its partner, CMA CGM will likely follow, according to Drewry.

"The Badagry project meanwhile is backed by APM Terminals and TIL (MSC), but limited progress appears to have been made, and APMT now has a completely revised corporate strategy focused on optimising existing assets rather than developing greenfield ones," it stated.

Meanwhile, the new Terminal Investment Limited (TIL) (MSC) hub at Lome, Togo, that opened in 2014 is growing rapidly, after handling 500,000 TEU in 2016. In addition, MSC recently signed a 35-year concession agreement with Ivory Coast's second port of San Pedro, to upgrade and operate its container terminal.

MSC has reportedly stated that that the improvements would allow vessels of up to 14,000 TEU to berth at the facility. Abidjan is already established as a hub port in Ivory Coast, and San Pedro will join it, indicating that MSC is not going to rely on Lome as a single hub in the region.

Shipping lines have many ways to serve the West Africa market. West Med ports have an established hub port role, serving the region from the outside, while within it Lome is becoming established due to MSC's backing.