ICTSI to invest $225 M in Nigeria port project

MANILA, Philippines - International Container Terminal Services Inc. is pouring in $225 million to provide cargo handling equipment and information technology infrastructure at Lekki container terminal in Tolaram Port in Lagos, Nigeria.

In a disclosure to the Philippine Stock Exchange (PSE), ICTSI said it signed with Lekki Port LFTZ Enterprises a 21-year sub-concession agreement for exclusive development and operation of the Lekki international container terminal.

The $225 million forms part of the $1.4 billion being invested in the entire port development.

Slated for completion by 2016, the Lekki port will have a 1,200-meter quay and an annual capacity of 2.5 million twenty-foot equivalent units, making it the largest single terminal in sub-Saharan Africa.

“This new concession will reinforce ICTSI’s presence in Africa and sets the standard for infrastructure developments in Africa,” said ICTSI chairman Enrique Razon during the concession signing ceremony.

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

“Lekki port is designed to cope with the current demand in the market and more importantly to fulfill future needs and expectations of our customers, the international shipping lines. The growing requirement for increased operational and infrastructural efficiencies is a crucial factor for any company following through a growth strategy in the region,” senior vice-president of ICTSI Africa Pty. Jens Floc said.    

Last month, ICTSI completed the acquisition of a port facility located in Jakarta’s Tanjung Priok area, adding it to its growing terminal portfolio.

It also acquired stakes in major cargo ports in the Middle East and Nigeria in Africa.

The port operator has earmarked $550 million this year for its capital expenditures – more than double what it spent in 2011.   

Of the total amount, about $345 million of the capital budget will go to greenfield projects in Argentina, Mexico and Colombia.

ICTSI is a leading port management company involved in the operations of 24 maritime terminals and port projects in 17 countries with six ports in the Philippines, and one terminal each in Indonesia, Brunei, India, China, Japan, United States, Ecuador, Brazil, Poland, Georgia, Croatia, Syria and Madagascar. It also has ongoing port development projects in Mexico, Colombia and Argentina.