₦airaland Forum

Lekki Port Enterprise, ICTSI ink MoU for Lekki port in Nigeria
Wednesday, March 14, 2012

Singapore - Lekki Port LFTZ Enterprise (LPLE) and International Container Terminal Services, Inc. (ICTSI) have signed a Memorandum of Understanding (MoU) for the operation of the container terminal of Tolaram Port@Lekki.

ICTSI has been selected as the preferred operator for a sub-concession to equip and operate the container terminal on an exclusive basis for a 20 year period, following a Request for Proposal process. The MoU will serve as a framework for a definitive and formal sub-concession agreement.

Slated for completion by 2016, this visionary project the largest of its kind in Sub-Saharan Africa is promoted by the Tolaram Group in partnership with the Nigerian Ports Authority (NPA) and the Lagos State Government (LASG).

Tolaram Port@Lekki, set within the Lagos Free Trade Zone, is strategically located 65km east of Lagos and will comprise a container terminal, a dry bulk terminal and a liquid bulk terminal with a total quay length of 1,500 meters.

Given its proximity to Lagos, the facility is well connected to industrial and consumption centres of Nigeria.

The container terminal will have a handling capacity of 2.5 million TEUs with a quay length of 1,200 meters an initial draft of 14 meters with the potential for further dredging to 16.5 meters upon completion. These features enable the facility to allow shipping lines to call with larger vessels to make the port into the preferred destination for the West African region.

It is envisaged that LPLE shall be responsible for design and civil works with a projected investment of more than USD 1 billion. ICTSI shall subject to execution of a definite sub-concession agreement, provide state-of-the-art equipment and IT infrastructure, and be exclusively responsible for container operation during the term of the sub-concession in line with global standards.

“ICTSI is excited at having been nominated the preferred bidder for this prestigious project that will further enhance Nigeria’s position on the regional and global maritime map,” says Enrique K. Razon Jr., ICTSI Chairman.

“The port project will be our largest investment to date and reflects our confidence in the Nigerian economy. Our belief and studies have shown that this infrastructure investment will result in significant multiplier benefits for the country’s future and catalyze the industrial development of this region. It is, by far, the largest infrastructure investment by a Singaporean company in Nigeria,” says Haresh Aswani who is both Tolaram Group’s Managing Director in Nigeria and Singapore’s Honorary Consul-General to Nigeria.

“The Lekki container terminal will provide a quality alternative to container handling facilities in the region, dramatically improving Nigeria’s international connectivity and its supply chains,” confirms Jens O. Floe, ICTSI Senior Vice President for Africa.

“Our facility in Lekki, given its location within West Africa’s largest market, has strong potential to emerge as the region’s dominant transshipment hub,” Mr. Floe added.

Nigeria’s size and profile, strong GDP growth and double-digittrade expansion have made the development of the Nigerian maritime infrastructure one of the key priorities of the NPA and the LASG. Tolaram Port@Lekki project is an excellent example of a successful public-private partnership (PPP), and could well turn into a role model for infrastructure development across Africa.

Publicly, the project has received strong support from all levels of the Nigerian Government, both Federal and State. The decision to approve the project is an affirmation of the Government’s commitment to develop the economy through PPP initiatives. The NPA and LASG have committed to work closely with LPLE to ensure the timely completion of the project.

It is such proactive initiatives by the Government that have made Nigeria one of the most attractive investment destinations, not only within Africa but also worldwide.
About Lekki Port LFTZ Enterprise
The Tolaram Port@Lekki will be a world class, modern multi-purpose port that will serve not only Nigeria but also its neighboring countries.
In April 2011, a major milestone was achieved with the Master Concession being signed between Nigerian Ports Authority and Lekki Port LFTZ Enterprise in Lagos, Nigeria.

The port will be built over 90 hectares of land in the heart of the Lagos Free Trade Zone, just 65 km east of Lagos.

The development and layout of Tolaram Port@Lekki takes into account both the physical and economical critical considerations. These include factors such as the natural port area, the equatorial climate and the environmental conditions as well as the types of cargo to be handled and the projected nautical vessel volumes to be handled.
In order to provide berthing for larger vessels, which is the growing global trend in the containership sector, Tolaram Port@Lekki will be equipped with the best infrastructure, equipment and terminal services to attract and maintain large volume shipping line customers. Facilities at the port will include well-designed marine infrastructure and container, dry bulk and liquid terminals, making it a truly multi-purpose port.

Features
1.5 km long breakwater
6 km long approach channel with 14 m draught
670 m diameter turning circle
1.5 km long quay wall
Three container berths of 8,000 TEU vessels
One 45,000 DWT liquid bulk berth
One 75,000 DWT dry bulk berth

More information at www.lekkiport.com

About Tolaram Group
Singapore based Tolaram Group has grown to become a multinational group over the course of the last 60 years. Tolaram Group has operations in 5 other countries: Nigeria, Estonia, Indonesia, Ghana and India. The Group’s portfolio now includes manufacturing, marketing & distribution, power transmission services, logistics and real estate. The Group currently employs over 8600 people. In 2011, the Group had a turnover of USD 650 million.

Tolaram Group has had operations in Nigeria since 1977. Currently, the Group employs over 6100 people in Nigeria.

Business interests in Nigeria include:
• Manufacturing, marketing and distribution of instant noodles, floor coverings, chemicals, dyestuffs and printing inks.
• Technical services/ projects in power transmission & distribution sector.
• Road modal logistics.
• Importing, sales and servicing of office automation products and medium & heavy commercial vehicles.
• Infrastructure projects.

The Group’s longstanding history in Nigeria makes them the ideal partner for such a venture. Tolaram Group has always been a pioneer when it comes to its business ventures.

More information at www.tolaram.com

About International Container Terminal Services Inc.

International Container Terminal Services, Inc. (ICTSI) is in the business of acquiring, developing, managing and operating container ports and terminals worldwide.

With a portfolio of 22 marine terminals in 17 different countries, ICTSI has become a leading operator, innovator and pioneer in the field of operations in emerging markets, serving all global shipping lines.
After consolidating and strengthening the base and flagship operations at the Manila International Container Terminal in the Philippines, they realized the potential for an independent international terminal operator like ourselves, and launched an aggressive international and domestic expansion program in 1994.

ICTSI is consequently perusing its growth strategy and set another milestone as operator for the future key facility in Nigeria and West Africa. Currently ICTSI is operating 23 marine terminals with a throughput of 5.2 million TEU annually. Recently published annually results showed an increase in revenue by more than 25 percent compared to 2010.

The track record confirms ICTSI’s ability to rapidly adapt to different operating environments, and to add substantial value due to specialized experience in growth markets, enhancing efficiency at every level.

ICTSI has the proven aptitude to perform beyond the expectations of central and regional governments of a privatization process, spanning both developed and emerging economies all this resulting in a sound financial performance, with over USD660 million revenue in2011.

Beaf: [size=14pt]West African ports move against Nigeria’s proposed hub bid[/size]
On March 29, 2012 · In Business
12:50 am
By GODWIN ORITSE

PORTS in neighbouring countries in the West African sub-region are currently constructing deep sea ports that will take mega ships so as to take up Nigerian bound cargoes.

In a letter to the President Goodluck Jonathan, the President of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Mr. Lucky Amiwero, said that most of the countries in the sub-region are building ports that can take vessels that carry as much as 14,000 containers.

He warned that if urgent steps are not taken to develop new ports in Nigeria, Nigeria will only contain itself with trans-shipment cargoes.

Amiwero stated that the establishment of transshipment center in any regional port, will eventually change the distribution pattern of cargoes within the sub-region.

He noted that the West and Central African coast from Mauritania to Angola is one of the few regions of the world with a dominant hub distribution port

The logistics expert disclosed that construction of a deep seaport in Seme-Kpodji as a transshipment center is a threat to Nigeria as Mega vessels carrying up to 15,000 containers will be directed to such and only trans-ship to Nigeria because of the nation’s draft which statistics says is not more than 10 meters.

Seme is a border town between Nigeria and Benin Republic where duty rates are low and cargo clearing procedure flexible.

He said “ Nigeria has one of the most important attributes carriers look for which is a strategic location of the hub/transshipment center relative to primary origins and final destination of the container traffic.”

He stated that with the plans to take nearly 75percent of Nigerian bound cargoes, Ghana, Benin Republic, and Cote D’’ Ivoire commenced moves to build deep sea ports.

He noted that until few years ago, Nigeria played host to land-locked countries like Niger, Chad, Burkinafaso and Cameroon as cargoes meant for these countries transited through Nigeria.

These trans-shipments have all been lost to Ghana and other neighbouring countries that are working round the clock to siphon Nigeria bound cargoes.

His words “ Nigeria ports palyed host to the land locked countries of Niger, Chad and Cameroon in the Sixties and Seventies, we lost all that to Ghana and Cote D’ Ivoire due to their process that conforms to FAL conventionof the International Maritime Organisation (IMO) Kyoto convention and reform implementation of Process procedure that minimize, simplifies and facilitate trade.

http://www.vanguardngr.com/2012/03/west-african-ports-move-against-nigerias-proposed-hub-bid/

Beaf:
[size=14pt]West African ports move against Nigeria’s proposed hub bid[/size]
On March 29, 2012 · In Business
12:50 am
By GODWIN ORITSE

PORTS in neighbouring countries in the West African sub-region are currently constructing deep sea ports that will take mega ships so as to take up Nigerian bound cargoes.

In a letter to the President Goodluck Jonathan, the President of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Mr. Lucky Amiwero, said that most of the countries in the sub-region are building ports that can take vessels that carry as much as 14,000 containers.

He warned that if urgent steps are not taken to develop new ports in Nigeria, Nigeria will only contain itself with trans-shipment cargoes.

Amiwero stated that the establishment of transshipment center in any regional port, will eventually change the distribution pattern of cargoes within the sub-region.

He noted that the West and Central African coast from Mauritania to Angola is one of the few regions of the world with a dominant hub distribution port

The logistics expert disclosed that construction of a deep seaport in Seme-Kpodji as a transshipment center is a threat to Nigeria as Mega vessels carrying up to 15,000 containers will be directed to such and only trans-ship to Nigeria because of the nation’s draft which statistics says is not more than 10 meters.

Seme is a border town between Nigeria and Benin Republic where duty rates are low and cargo clearing procedure flexible.

He said “ Nigeria has one of the most important attributes carriers look for which is a strategic location of the hub/transshipment center relative to primary origins and final destination of the container traffic.”

He stated that with the plans to take nearly 75percent of Nigerian bound cargoes, Ghana, Benin Republic, and Cote D’’ Ivoire commenced moves to build deep sea ports.

He noted that until few years ago, Nigeria played host to land-locked countries like Niger, Chad, Burkinafaso and Cameroon as cargoes meant for these countries transited through Nigeria.

These trans-shipments have all been lost to Ghana and other neighbouring countries that are working round the clock to siphon Nigeria bound cargoes.

His words “ Nigeria ports palyed host to the land locked countries of Niger, Chad and Cameroon in the Sixties and Seventies, we lost all that to Ghana and Cote D’ Ivoire due to their process that conforms to FAL conventionof the International Maritime Organisation (IMO) Kyoto convention and reform implementation of Process procedure that minimize, simplifies and facilitate trade.

http://www.vanguardngr.com/2012/03/west-african-ports-move-against-nigerias-proposed-hub-bid/