Playing a key role in the nation's economy and trade, Nigeria’s ports are being modernised and partly privatised
new
era of private seaport operation has got under way in Nigeria with the
transfer of the management of the country’s leading harbours to
private hands. Playing a central role in this process has been the Nigerian
Ports Authority (NPA), whose commitment to the federal government’s
policy of ports reform has facilitated the handover.
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Private sector companies
have won concessions to run critical operations, such as stevedoring,
loading and unloading, berthing and cargo management, for periods of
between 10 and 25 years. Heading the list is APM Terminals, a unit of
shipping giant A.P. Moeller-Maersk, which bid $1 billion (£575
million) to run Nigeria's largest container terminal at Apapa Port.
Other winners include Sifax, Tin Can Island Container Terminal Ltd and
Joseph Dam and Sons, and concessions were also granted to indigenous
companies Flour Mills of Nigeria and the Dangote Group.
The private operators will provide modern cargo equipment and ensure
regular maintenance of access channels to the ports, improving efficiency
and turnaround time. Their involvement in Nigeria’s maritime industry
is expected to stimulate investment and competition and generate more
wealth for the economy as a whole.
“Port reform is about making sure that our waterfront operations – which have a direct impact on the economy – are carried out with as much efficiency and productivity as possible,” says the NPA’s Managing Director, Adebayo Sarumi.
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He sees this as a time of great excitement for the industry and embraces the change. “The handing over of terminal operations to international port operators will lead to the elimination of sub-standard practices in the area of freight forwarding and other aspects of maritime operations.” Competition among operators will bring down costs and attract more business, he adds.
For the NPA, partnership
with the private companies will reduce its capital spending obligations,
easing pressure on the public purse. “The NPA will no longer have
to rely on scarce national resources in order to buy equipment and boats,”
says Mr Sarumi. “It will partner the private sector companies to
ensure an efficient running of operations.
“Our ambition is to reach the same level of quality as international
ports. We are much closer to getting that done than we have ever been.”
Although wholly state-owned, the NPA was commercialised back in 1992. Since then, its revenues have grown to the point where it has been generating about 30 billion naira for the federal government.
Facilities at Apapa are being taken over by foreign and local firms
In total, the NPA is responsible for eight ports, including Lagos, 11 oil terminals and 128 private jetties, among other facilities, with a total cargo handling capacity of around 35 million tons. A network of road, rail and sea connections links the ports with the rest of the country.
Nigeria accounts for roughly 68 per cent of total sea trade in the West African region, and there is huge growth potential, given the relatively underdeveloped state of the regional economy. Strategically positioned in the heart of the oil-rich Gulf of Guinea, the Nigerian economy stands to gain from any further developments in the wider region.
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