Terminal Operators’ investments in port operations hit N152bn in 13 years

Abiola Seun |

Four terminal operators operating at the nation’s seaports have invested N152bn in cargo handling equipments in the last 13 years, investigations have revealed

Recall that the administration of ex-president Olusegun Obasanjo had in 2006 concessioned the nation’s seaports to terminal operators for efficiency and effectiveness.

However, the acquisition of cargo handling equipments have reduced the average vessel waiting time of about 30 days before port concession to an average of two days

For instance, terminals such as APM Terminals, Ecomarine, PTML and Intels Calabar have successfully eliminated vessel-waiting time to zero while ABTL has 2.8 days and ENL 1.4 days as against an average general cargo vessel waiting time of about 45 days prior to concession.

However, the terminals have invested over N152bn in terminal expansions and acquisition of cargo handling equipment.

Also, cargo handling capacity at the port which was about 6.5 million tons in 2006 when the port terminals were concessioned rose to about 25 million tons as at last year.

For instance, the largest container terminal in West Africa, APM Terminal, Apapa has invested over N120billion in cargo handling equipment since it took over the running of tbe terminal in 2006.

The immediate past Head of Corporate Communication of Maersk Group (parent company of APM Terminal), Austin Fischer, had said that the terminal has invested about N120 billion ($350 million) for the development of the terminal and acquisition of cargo handling equipment in the last 10 years.

Fischer said that one major area of investment is the yard space that was made bigger to create space for more consignments.

He explained that when they started at the beginning of the reforms, they do not have mobile cranes, Rubber Tyred Gantry Crane, RGTs but now they have the equipment.

He also disclosed that they have invested in a training centre where they have a simulator with which they train crane operators before they go to operate the mobile cranes for the discharge of consignments from the ships.

Also, an indigenous terminal operator, Ports and Cargo Handling Services, operators of Terminal “C” at Tin-can Island port, also said it has ordered for four harbour cranes worth €18million (N7.3billion at a prevailing rate of N406/€) for expansion of the company.

In a recent chat, during a Mid-Year briefing, the Group Managing Director, Mr. Adekunle Abdulrazak Oyinloye explained that as part of its five year strategic plan, the company has ordered for four harbour cranes at €4.5m each to complement its existing five harbour cranes at the seaports.

“We are also investing in new equipments to make cargo handling more seamless at the ports. Very soon, four more harbour cranes will be arriving to complement the existing five at Port & Cargo Handling Services (P&CHS). Each harbour cranes cost averagely €4.5m.”

This is aside the over $100 million sunk into the terminal in the last ten years

Also, Josepdam Port Services Nigeria Limited, JPS, operators of terminal “A” at the Tin can Island port, on their part said they had started investing about N19.8 billion ($55 million) for the expansion of terminal infrastructure and acquisition of new cargo handling equipment in 2017.

Managing Director of JPS, Simon Travers, said then that the expansion when completed is expected to enable JPS grow its annual cargo throughput to over 3.5 million metric tons.

According to him, “We are putting up more finance to develop the terminal in five years. And we are ready to do about $55 million investment on our terminal.”

He said that they are in the process of getting extra land to convey their general cargo, noting that they intend to seek additional space between Kirikiri and Tin-can area of Lagos for that purpose.

He also pointed out that they are upgrading the terminal to a world class facility by importing all their machineries and infrastructure from Europe to improve their ship discharge capacity to 600 tons an hour.

Also, West Africa Container Terminal (WACT), has invested N4.5billion in cargo equipment im 2019.

WACT had lunched two biggest mobile harbour cranes for discharge of cargoes at the terminal in July 2019

The mobile harbour cranes which worth over $10million (N3.6billion at a prevailing rate of N360/$1) was acquired in conjunction with 10 terminal trucks and reach stackers to increase turn around time of vessels at the terminal.

The two new container cargoes handling facilities would bring WACT, one of the most efficient container terminals outside Lagos, at par with its peers in Apapa, and Tin Can Island Ports, in terms of equipment and operational efficiency.

Speaking on the acquisition, the Managing Director, WACT, Aamir Mirza, said the massive investment at the terminal has attracted 700 direct and 2000 indirect employment in the country.

He said the company has recorded tremendous growth of 17 percent in 2017, 21 per cent growth in 2018 and 20 per cent growth attained so far this year.

Mizra described the $10 million investment as a key enabler to customers’ satisfaction.

This is in addition to an investment of approximately $2.5 million (N900million) already made this year.

The $2.5 million was used for 10 purpose-built terminal trucks, three reach stackers and an empty container handler, as well as terminal infrastructure and manpower development.