Cargo traffic surges at Nigerian ports after Benin border closes
NIGERIA's big container terminal is expanding operations to deal with a sharp rise in traffic since the government closed the border with Benin to curb rice and fuel smuggling, reports Bloomberg
NIGERIA's big container terminal is expanding operations to deal with a sharp rise in traffic since the government closed the border with Benin to curb rice and fuel smuggling, reports Bloomberg.
About 80 per cent of all imports into Benin's Port of Cotonou were destined for its much bigger neighbour. Today, Lagos cargo has surged with imports up 50 per cent, said Maersk. Its unit APM Terminals manages the container terminal at Nigeria's main port of Apapa in Lagos.
APM Terminals is spending US$80 million to double the number of cranes at Apapa and expand capacity. The Nigerian Ports Authority, which granted the company its concession in 2006, has complained about the inadequacy of its cargo handling equipment and the resulting delays, reports the Lagos daily, ThisDay.
Delivering goods to Apapa is significantly more expensive than sending them to the ports of Durban in South Africa and Tema in Ghana, according to Cheta Nwanze, partner with Lagos-based risk consultancy SBM Intelligence.
Elevated shipping and terminal charges, as well as local transport prices, means Apapa's costs are five times higher than Durban's and three times higher than in Tema, it said in a note published.