Africa’s overall port utilization capacity has exceeded 70 percent, with a further increase likely to cause intense congestion and reduce economic output for the continent, Nigerian Minister of Trade and Investment, Mr Olusegun Aganga says.
Anxiety mounts in some quarters, as if the trend continues (it is expected to rise to 80 percent within the next decade), it will reduce the efficiency of ports, thus hampering economic growth.
Mr Aganga noted this in a meeting with senior members of a Dutch international container terminal operating company, APM Terminals and a delegation of government officials in The Hague, Netherlands.
According to Nigerian newspaper, ThisDay, the meeting was convened to discuss investments plans in port infrastructure that will ‘promote Nigeria’s economic development through access to world class logistics facilities’.
Linking port activities to economic development, the Minister acknowledged that government was already partnering with private terminal operators to boost infrastructure development within the nation’s ports- creating more jobs in the process- and attract foreign investment through an effective port system.
He cited the proposed Badagry mega-port – an APM Terminals initiative designed to modernize Africa’s port infrastructure – as a prime example of public-private sector partnership.
“Ports are linked to the industrial development of the country and we welcome more port investment.” Mr Aganga said.
“We are excited about the Badagry port project and how this multi-purpose facility aligns with our industrial development plans for the nation.” He added.
The Africa-Middle East Regional CEO the company, Mr Peder Sondergaard said the new Badagry port promises to transform Nigeria’s global trade access by creating ‘the most modern multi-purpose port’ on the African continent.
The mega port holds a container, bulk, petrochemical and RoRo cargo-handling capability and is just 55 km from Lagos, Nigeria’s economic hub.
APM Terminals – a subsidiary of – Danish logistic port operations multinational, AP Meoller-Maersk Group – says it has invested more than $175 million across its African portfolio in 2012.
Its investments in Africa include: $145 million in the rebuilding of the quay wall in Liberia. Since 2006, it has invested $200 million in Nigeria’s Apapa Port – West Africa’s busiest container terminal. It is also investing $30 million in upgrades, yard expansion, paving, new equipment and safety improvements to double the capacity of the West African Container Terminal (WACT).
Furthermore, APM is investing $100 million in Ghana’s local terminal operating company, Meridian Port Services to expand annual throughout capacity to 1 million TEU (20-foot equivalent unit).
