ICTSI Nigerian Lekki project wins investment from NPA, state government
MANILA's International Container Terminal Services Inc (ICTSI) has won Lagos State Government and the Nigerian Ports Authority (NPA) as shareholders to develop a 1.7 million-TEU annual capacity terminal at Lekki opening in 2016.
Both the Lagos State Government and the NPA confirmed that they had each taken 20 per cent in the Lekki project with Tolaram Port@Lekki, which is owned by Singapore's Tolaram Group, a retailing, food processing and real estate giant.
The deal represents a step forward, as land acquisition procedures have already been done along with the terminal concession agreement and initial engineering contracts, noted London's Containerisation International.
"This project is conceived to complement our Tin Can Island and Apapa port facilities and to improve the nation's economy. Our two existing ports are overstretched," said NPA managing director Habib Abdullahi.
The Lekki terminal construction is expected to start early next year with phase I to open for business in 2016. At full build-out, the 1,200-metre quay will be served by 14 postpanamax cranes and a 90 hectare yard capable of processing 2.5 million TEU a year.
ICTSI's Lekki project is one of two for the Lagos/Apapa area, with rival APM Terminals group - the biggest operator of container terminals in West Africa - planning a similar integrated port and logistics centre at nearby Badagry.
The APM T proposal is behind that of Lekki, which has been a project in discussion for more than 10 years. Indeed, the APM T-fronted consortium is still seeking approval and the necessary legal documents from the various government agencies to proceed with its plan.
Said APM T Africa-Mideast CEO Peder Sondergaard: "We hope to be in a position to sign a concession agreement with the NPA early next year and then work on a detailed design and tender process for the project after that."
As to the risk of overcapacity, ICTSI vice president Jens Floe said: "We believe in the Nigerian market and its strong growth in the short and medium term. Potentially, this level of growth could support more projects, especially in the light of the different levels of progress for the projects as they are not likely to come online at the same time."
MANILA's International Container Terminal Services Inc (ICTSI) has won Lagos State Government and the Nigerian Ports Authority (NPA) as shareholders to develop a 1.7 million-TEU annual capacity terminal at Lekki opening in 2016.
Both the Lagos State Government and the NPA confirmed that they had each taken 20 per cent in the Lekki project with Tolaram Port@Lekki, which is owned by Singapore's Tolaram Group, a retailing, food processing and real estate giant.
The deal represents a step forward, as land acquisition procedures have already been done along with the terminal concession agreement and initial engineering contracts, noted London's Containerisation International.
"This project is conceived to complement our Tin Can Island and Apapa port facilities and to improve the nation's economy. Our two existing ports are overstretched," said NPA managing director Habib Abdullahi.
The Lekki terminal construction is expected to start early next year with phase I to open for business in 2016. At full build-out, the 1,200-metre quay will be served by 14 postpanamax cranes and a 90 hectare yard capable of processing 2.5 million TEU a year.
ICTSI's Lekki project is one of two for the Lagos/Apapa area, with rival APM Terminals group - the biggest operator of container terminals in West Africa - planning a similar integrated port and logistics centre at nearby Badagry.
The APM T proposal is behind that of Lekki, which has been a project in discussion for more than 10 years. Indeed, the APM T-fronted consortium is still seeking approval and the necessary legal documents from the various government agencies to proceed with its plan.
Said APM T Africa-Mideast CEO Peder Sondergaard: "We hope to be in a position to sign a concession agreement with the NPA early next year and then work on a detailed design and tender process for the project after that."
As to the risk of overcapacity, ICTSI vice president Jens Floe said: "We believe in the Nigerian market and its strong growth in the short and medium term. Potentially, this level of growth could support more projects, especially in the light of the different levels of progress for the projects as they are not likely to come online at the same time."