APM Terminals: Great Future for Nigerian Ports

Senior APM Terminals leaders met with the Nigerian Federal Minister of Industry, Trade & Investment, Mr. Olusegun Aganga and a delegation of government officials and advisors in The Hague as part of ongoing discussions on port infrastructure investment to promote Nigerian economic development through access to world-class logistics capabilities.

Overall African port utilization currently exceeds 70% and is expected to reach 80% over the next decade, resulting in worsening port congestion and constrained economic growth. The IMF has projected Nigerian GDP growth rates of 7.2% in 2013 and 7% in 2014, with Africa overall forecasted to see economic growth of 5.5% this year.

In recognition of increasing pressure on trade and economic performance, governments are partnering with private terminal operators to accelerate infrastructure development, create new jobs and attract more investment from world markets through a competitive port system, such as the proposed new mega-port at Badagry, Nigeria. The New Partnership for Africa’s Development (NEPAD) has estimated Africa’s infrastructure spending gap at USD 48 billion.

“Ports are linked to the industrial development of the country and we welcome more port investment. We are excited about the Badagry port project and how this multi-purpose facility aligns with our industrial development plans for the nation” said Mr. Aganga, who has also served as Nigeria’s Minister of Finance.

APM Terminals’ proposed Badagry mega-port project is one of many initiatives by APM Terminals designed to modernize Africa’s infrastructure through aggressive investment in transportation infrastructure upgrades.

“Last year, APM Terminals committed more than USD 175 million in investments across our African portfolio. We want to continue this pace to serve the ambitions of Africa’s countries and people”, commented APM Terminals Africa-Middle East Regional CEO Peder Sondergaard.

The new Badagry port promises to transform Nigeria’s global trade access by creating the most modern multi-purpose port on the African continent, with container, bulk, petrochemical and RoRo cargo-handling capability just 55 km (34 miles) from the City of Lagos, Nigeria’s commercial and financial hub and fastest growing city, with population estimated as high as 20 million people.

APM Terminals has interests in nine facilities in Africa with a robust pace of investments and improvements in progress and scheduled. In Monrovia, Liberia a USD 145 million investment has rebuilt the quaywall, and will create a new container yard and gate complex, including lighting and new terminal handling equipment. In Abidjan, Ivory Coast, APM Terminals is investing USD 40 million in port upgrades to boost capacity, and an APM Terminals-led consortium has been chosen as the preferred bidder to build and operate a second container facility which will double current capacity by adding another 1.5 million TEU annual capacity, and will be able to accommodate vessels of 8,000 TEU capacity at one of West Africa’s busiest port hubs.

In Tema, Ghana, the company is investing USD 100 million in the local terminal operating company Meridian Port Services to expand annual throughput capacity to 1 million TEU and introduce new container handling equipment. In Apapa, Nigeria, APM Terminals has invested USD 200 million since 2006, creating West Africa’s busiest container terminal, with throughput of 618,000 TEU in 2012, and Africa’s largest mobile harbor crane port. An additional USD 135 million now is being invested to expand annual capacity at the facility to 1.2 million TEU by early 2014. In Onne, Nigeria, the company is investing USD 30 million in upgrades, yard expansion, paving, new equipment and safety improvements to double the capacity of the West African Container Terminal.

“We see our African investment initiatives not only as an attractive business strategy, but also as a responsibility in promoting economic growth and social progress in underserved emerging markets” said Mr. Sondergaard.

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Press Release, June 12, 2013