APM Terminals Proposes New Nigerian Mega-Port Project
Lagos, Nigeria – APM Terminals and its consortium partners have announced plans to develop a new greenfield mega-port project and Free Trade Zone at Badagry in Nigeria’s Lagos State, 55 km (34 miles) west of Apapa and the Port of Lagos on the Benin-Lagos Expressway. At full build-out, the deep-water full-service port will be one of the largest in Africa with 7 km of quay and 1,000 hectares (2,470 acres) of dedicated yard, and will include state-of the art facilities for container, bulk, liquid bulk, Ro/Ro and general cargo as well as oil and gas operations support and a barge terminal. Plans for the adjoining Badagry Free Trade Zone will include a power plant, oil refinery, industrial park and warehousing and Inland Container Deport functions. The first phase of the project is scheduled to open in 2016.
“We are actively working with state and federal governments on the permission process” stated APM Terminals Africa-Middle East Regional CEO Peder Sondergaard, adding that “the Nigerian Ports Authority, Lagos State and the Nigerian federal Government have been supportive and positive”.
Badagry port future image Phase 3
Earlier this year, Nigerian Minister of Transport, Senator Idris Umar, cited the proposed Badagry Port project as an example of a public-private partnership development which would help to address congestion and establish Nigeria as a maritime trading hub for West and Central Africa during his keynote address at the 12th Maritime Seminar for Judges in Abuja in June. The Benin-Lagos Expressway is currently being upgraded to a 10-lane highway which will facilitate cargo movements to and from inland destinations in the region.
APM Terminals is currently one of the largest port and terminal operators in Africa, and in West Africa in particular, where APM Terminals Global Terminal Network include nine facilities in eight West African nations, including Apapa Container Terminal, and West Africa Container Terminal in Onne, Nigeria. APM Terminals Apapa, which assumed operations at Lagos’ Apapa Container Terminal in 2006, is now the busiest container terminal in West Africa, handling 600,000 TEUs in 2011, with throughput for 2012 projected to be 720,000 TEUs. Equally important, shipping lines and African shippers have seen significant improvements to supply chain reliability and cost savings.
Industry analysts have predicted that Nigerian container volume, which totaled 1.4 million TEUs in 2011, will outstrip existing port capacity by 2017. At present, approximately 85% of all Nigerian non-oil cargo passes through the Port of Lagos. Over the next three decades, Nigerian annual container traffic is expected to grow to 10 million TEUs.
With 170 million people, Nigeria is the largest country in Africa by population, and the 7th-largest worldwide. By 2050, the UN has forecast that Nigeria’s population will have risen to 289 million, following only India, China, the USA and Pakistan in global population ranking. Lagos is the 2nd-largest city in Africa (after Cairo) with a population of 10.2 million, and is home to an estimated 60% of Nigerian manufacturing. The Nigerian economy, the 2nd-largest in sub-Saharan Africa after South Africa, driven by oil exports, has been forecast by the International Monetary Fund to expand by 7.1% in 2012 and 6.7% in 2013.
The proposed Badagry Mega-Port project fits well into APM Terminals’ strategy of infrastructure development in targeted high-growth markets. Current new terminal and port expansion projects and investments include Lazaro Cardenas, Mexico; Moin, Costa Rica; Callao, Peru; Santos, Brazil; Ningbo, China and Poti, Georgia. The Badagry consortium partnership is comprised of APM Terminals, Orlean Invest, the Macquarie Group, Oando PLC, the Chagoury Group and Terminal Investment Limited. Support for the project has also been expressed by the Nigerian Ports Authority, and the Governor of Lagos State.
Orlean Invest has created an integrated logistics solution that offers a complete array of facilities and services for oil and gas industry operators in the sub-Saharan West African region. Intels was established in 1982 at Onne port complex and the company has since become a major participant in the development of the Oil and Gas Free Zone. Oil Service Centers and bases were also set up at Warri and Calabar during this period. Intels implements its integrated logistics vision in cooperation with the respective government authorities, national oil companies, major oil producing companies and related service companies. With additional support from APPA (African Petroleum Producers Association) and AIP (African Institute of Petroleum), a common philosophy has evolved for managing oil and gas activities on a regional basis.
Oando PLC is Africa’s leading indigenous energy group that symbolizes performance, service excellence and professionalism. From its origins in downstream petroleum products marketing, Oando has redefined its business imperative to encompass the entire value chain in the oil & gas industry. Today, the group comprises of five main companies that are market leaders in their respective sectors: Oando Marketing – Nigeria’s largest petroleum retailer with operations in West Africa; Oando Supply and Trading – Africa’s largest independent and privately owned trading company, Oando Gas & Power – pioneer distributor of natural gas via pipelines, Oando Energy Services – one of the largest indigenous drilling rig operators and Oando Exploration and Production – leading indigenous exploration and production company. Oando is listed on the Nigerian and Johannesburg Stock Exchanges.
Macquarie Group is a global provider of banking, financial, advisory, investment and funds management services. Macquarie acts on behalf of institutional, corporate and retail clients and counterparties around the world and has expertise in specific industries, including resources and commodities, port management, energy, infrastructure and real estate. Macquarie, through its African business, African Infrastructure Investment
Managers (AIIM), has raised its 4th African infrastructure equity investment fund, and is a significant player in the Nigerian Infrastructure market, participating in projects such as the Lekki toll road and the Azura – Edo Independent Power Plant. Founded in 1969, Macquarie employs more than 14,200 people in 28 countries. At 31 March 2012, Macquarie had assets under management of $336 billion and manages over $2 billion committed to port investments across 12 container/bulk terminals and 12 oil terminals in 9 countries.
Terminal Investment Limited (TIL) is active in global terminal operations, with material equity interests in 23 operating terminals and 5 greenfield terminals across 18 countries in 5 continents. TIL’s main customer is MSC Mediterranean Shipping Company SA (“MSC”), the world’s 2nd largest container shipping line.
The Chagoury Group’s portfolio of activities include construction and property development, flour Mills, water bottling and purification, glass manufacturing, insurance, hotels, furniture manufacturing, telecommunications, IT, catering and international financing.
APM Terminals
– providing the port and inland infrastructure to lift global trade
APM Terminals’ Global Terminal Network of ports and inland services provide the infrastructure for the growth of international trade, 90% of which travels by sea. International commerce is an economic growth engine, creating jobs, lifting economies and improving people’s lives around the world.
With world headquarters in The Hague, Netherlands, the company’s core expertise is the design, construction, management and operation of ports, terminals and inland services with a Global Terminal Network including interests in 70 port facilities in 40 countries and Inland Services operations in 160 locations in 48 countries.
