ICTSI to operate Nigeria international cargo terminal

MANILA, Philippines—Port operator International Container Terminal Services Inc. (ICTSI) continues to expand its global reach with the recent signing of a deal to secure control over one of Nigeria’s international cargo terminals.

In a statement on Wednesday, ICTSI, owned by billionaire Enrique K. Razon Jr., said it had signed a memorandum of understanding (MOU) with Lekki Port LFTZ Enterprise (LPLE) for the operation of the container terminal of Tolaram Port in Nigeria.

“ICTSI has been selected as the preferred operator for a subconcession to equip and operate the container terminal on an exclusive basis for a 20-year period, following a Request for Proposal process,” the Razon-led firm said.

“The MOU will serve as a framework for a definitive and formal subconcession agreement,” it added.

Slated for completion by 2016, this visionary project-the largest of its kind in Sub-Saharan Africa—is promoted by the Tolaram Group in partnership with the Nigerian Ports Authority (NPA) and the Lagos State Government (LASG).

Tolaram Port, set within the Lagos Free Trade Zone, is strategically located 65 kilometers east of Lagos and will comprise a container terminal, a dry bulk terminal and a liquid bulk terminal with a total quay length of 1,500 meters.

“Given its proximity to Lagos, the facility is well connected to industrial and consumption centers of Nigeria,” ICTSI said.

The container terminal will have a handling capacity of 2.5 million container terminals a year, measured in 20-foot equivalent units or TEUs.

“These features enable the facility to allow shipping lines to call with larger vessels, to make the port into the preferred destination for the West African region,” ICTSI said.

LPLE, the direct concessionaire for the facility, is expected to invest $1 billion on the port.

ICTSI shall, subject to execution of a definite subconcession agreement, would in turn provide state-of-the-art equipment and IT infrastructure, and be exclusively responsible for container operation during the term of the subconcession in line with global standards.

Earlier this month, ICTSI said it had set aside a budget of $550 million in capital expenditures for 2012, more than double the amount spent in 2011. This followed the issuance of $150 million in 10-year perpetual bonds in January.

Aside from the Nigeria port, ICTSI also recently announced plans to acquire a stake in the Pakistan International Container Terminal—a port developer based in Karachi.