Nigeria: LPLE, ICTSI Sign Sub-Concession Agreement
The sub-concession has been signed for the container terminal, Lekki International Container Terminal Services (LICTS), at the Tolaram Port@Lekki. ICTSI was granted the concession to develop and operate the container terminal on an exclusive basis for a 21 – year period.
Tolaram Port@Lekki is promoted by Tolaram Group in partnership with the Nigerian Port Authority and the Lagos State Government. Within this port complex the newly created company, Lekki International Container Terminal Services (LICTS), is set to emerge as the new container hub for West Africa. The advantageous location will be combined with state-of-the-art facilities; 14 Post – Panamax cranes and a draft allowing vessels of 10,000 TEU to call at the terminal will enable the port to establish itself as the preferred destination in the region.
With a quay of 1200m, this modern facility, which is expected to be fully operational in 2016, will have an annual capacity of 2.5 million TEU, making it the largest single terminal in Sub-Saharan Africa. ICTSI will invest in excess of USD 225 million to provide cargo handling equipment and related IT infrastructure. This investment forms part of the USD 1.4 billion being invested in the entire port development.
“ICTSI is looking forward to entering the regional market with this eminent project, Lekki International Container Terminal Services (LICTS). This new concession will reinforce ICTSI’s presence in Africa and sets the standard for infrastructure developments in Africa.” Mr. Enrique K. Razon Jr, the Chairman of ICTSI said during the concession signing ceremony. The ceremony hosted by Tolaram Group in Singapore was also attended by Mr. Mohan K. Vaswani, the Chairman of Tolaram Group.
”We anticipate that the demand at our facility will go beyond the expected 2.5 million TEU. We are designing the port to allow for expansion to serve that excess demand in a short span of time upon completion,” said Mr. Mohan K. Vaswani.
“The multiplier effect of the Tolaram Port@Lekki on the potential GDP of Nigeria will be significant. The infrastructure alone will spur substantial growth prospects for the country and we are happy to be a part of this transformation,” added Mr. Vaswani.
“I am very satisfied with the development phase of this important project and will render all the support needed to ensure smooth take off,” said Mr Habib Abdullah, Managing Director of The Nigerian Ports Authority (NPA), during his visit to the site. “NPA , as partners in the project are delighted to see the signing of the this agreement as it is a commitment of the promoters and operators to the success of the port. The Port once commissioned will be a catalyst for economic growth in Nigeria”, added Mr Abdullahi.
“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.” said Mr. Jens Floe, Senior Vice President of ICTSI Africa Pty.
Mr. Floe stated, “The high standards of our facility should ensure that we become supplier of choice in West Africa as principal transshipment hub giving our customers a competitive advantage.”
Source: Lekki Port, August 10, 2012