Private investment unlocks Nigeria’s port potential

Mediterranean Shipping Company’s investment in Nigeria marks a significant milestone.

By Leon Louw founder of WhyAfrica and Endorphin Expeditions

Private investment unlocks Nigeria’s port potential 

Nigeria’s maritime infrastructure received a boost last week when global shipping giant Mediterranean Shipping Company announced that they are investing more than USD1-billion to strengthen supply chains and logistics in Nigeria.

The company secured a 45-year concession with Nigerdock to develop and operate a new container terminal at Snake Island Port in Lagos.  

Snake Island Port is a private development within the Snake Island Integrated Free Zone.

Growing investment in maritime infrastructure  

Nigeria’s six established seaports operated by the Nigerian Ports Authority (NPA) has been strengthened by the recent addition of private facilities like Snake Island Port and the Lekki Deep Sea Port, reflecting growing investment in the country’s maritime infrastructure.

These six major seaports (Apapa and Tin Can Island in Lagos, Onne and Port Harcourt in Rivers State, Warri in Delta State and Calabar in Cross River State) are plagued by inefficiencies and bottlenecks and any new developments will ease these constraints.

Lagos port complex dominate activity

Historically, the Lagos port complex has dominated Nigeria’s maritime activity.

The ports of Apapa and Tin Can Island handle roughly 70–80% of Nigeria’s international trade, making Lagos one of the busiest maritime hubs in West Africa.

Exports dominated by crude oil

Nigeria’s exports moving through these ports are still dominated by crude oil and petroleum products, but the government is pushing diversification into agricultural commodities, minerals and manufactured goods.

Imports remain significant, consisting mainly of machinery, refined fuel, chemicals and food products.

Specs for Snake Island

Specification for the new development at Snake Island include a 910m quay, facilities for ship-to-shore cranes and mobile harbour cranes to speed up container handling.

Initial work it will focus on a dredging depth of about 16.5 m, with the potential to deepen to 18 m so the port can handle larger vessels in the future.

Plans include making provision for a 30-hectare container yard designed for hybrid rubber-tyred gantry cranes, with room for further expansion.

The construction contract has been awarded to ITB Nigeria and DEME Group, with completion expected around 2028.

Read more about Nigeria, ports and infrastructure in Africa and investing in Africa’s natural resources on the WhyAfrica website, your one-stop-shop for on the ground information and business intelligence about Africa.

Image:  Apapa Port in Lagos, Nigeria. Image credit: Wikimedia Commons. com

Private investment unlocks Nigeria’s port potential