Port operator International Container Terminal Services Inc. has bagged a new contract to develop and run a major container terminal in Nigeria’s Lagos Free Trade Zone that is expected to be the largest terminal in sub-Saharan Africa once operational in 2016.
ICTSI is expected to invest over $225 million in this project, thus raising its stake in Africa. The Philippine company currently has operations in Madagascar, making Nigeria its second market in the region.
In a disclosure to the Philippine Stock Exchange on Friday, ICTSI said it had signed a sub-concession agreement with Lekki Port LFTZ (LPLE) for a container terminal at a deep water port in Ibeju Lekki, Lagos also called Tolaram Port@Lekki, which is envisioned to be a world class, modern multi-purpose port that will serve not only Nigeria but also its neighboring countries.
In a separate statement, ICTSI said it would invest in excess of $225 million to provide cargo handling equipment and related information technology infrastructure. This investment forms part of the $1.4 billion being invested in the entire port development.
The Tolaram Port@Lekki is currently being developed and managed by the Tolaram group in partnership with the Nigerian Port Authority and the Lagos State Government.
The agreement grants ICTSI, as sub-concessionaire, the exclusive right to develop and operate as well as to provide certain handling equipment and container terminal services within Tolaram Port@Lekki for a period of 21 years.
“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,” ICTSI chair Enrique Razon Jr. said during the concession signing ceremony in Singapore.
Mohan Vaswani, chair of Tolaram Group, said: ”We anticipate that the demand at our facility will go beyond the expected 2.5 million TEU (total equivalent units). We are designing the port to allow for expansion to serve that excess demand in a short span of time upon completion.”
The strategic location of the container terminal, combined with its state-of-the-art facilities, will enable Tolaram Port@Lekki to establish itself as the preferred port terminal in the region,” ICTSI said in the disclosure.
With a quay of 1,200 meters, this modern facility is expected to become the largest single terminal in sub-Saharan Africa.
ICTSI is a leading port management company involved in the operations and development of 24 marine terminals and port projects in 17 countries. It was among the first international terminal operators to expand globally, establishing a good track record in various economies privatizing port operations.