ICTSI bags deal to operate Nigerian port

MANILA, Philippines - International Container Terminal Services Inc. (ICTSI) is negotiating with Lekki Port LFTZ Enterprise (LPLE) to develop and operate a container terminal at the Lagos Free Trade Zone in Nigeria.

In a disclosure to the Philippine Stock Exchange yesterday, ICTSI said it signed a memorandum of understanding with LPLE that gives them six months to discuss and agree on the terms of a sub-concession to operate the terminal on an exclusive basis for a 20-year period.

The project is being promoted by Singapore’s Tolaram Group in partnership with the Nigerian Parts Authority and the Lagos State Government.

Slated for completion by2016, the container terminal will have a handling capacity of 2.5 million 20-foot equivalent units (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 the preferred destination for the West African region and the largest of its kind in Sub-Saharan Africa.

LPLE will design and build the project at an estimated cost of $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.

“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,” ICTSI chairman and CEO Enrique K. Razon Jr. said. 

“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,” said Haresh Aswani who is both Tolaram Group’s managing director in Nigeria and Singapore’s Honorary Consul-General to Nigeria.

Given its location within West Africa’s largest market, the Lekki port has strong potential to emerge as the region’s dominant transshipment hub.