Danish shipping and logistics company, A.P Moller-Maersk, has unveiled plans to expand existing port infrastructure in Nigeria with the investment of $600 million to accommodate more container shipping services in the nation’s ports.
The investment plan was sequel to the discussions by President Bola Tinubu with the Chairman of the company, Mr. Robert Maersk Uggla, on the sidelines of the World Economic Forum Special Meeting on Global Collaboration, Growth and Energy for Development in Riyadh, Saudi Arabia, on Sunday.
Tinubu noted that the planned investment would complement the administration’s ongoing $1 billion investment in seaport reconstruction across the eastern and western seaports of Nigeria.
In addition, the President said the investment by A.P Moller-Maersk would further support the port modernization efforts and port process automation through the ongoing implementation of the national single window project by the government.
The project is designed to enhance trade facilitation, ease import/export flow, reduce abuses at the ports as well as improve the efficiency and transparency of port processes in the country.
Tinubu said: “We appreciate your business and the contribution you have made and continue to make to our country’s economy over time. We do not take our partners for granted. A bet on Nigeria is a winning bet. It is also a bet that rewards beyond what is obtainable elsewhere.
“More investment opportunities are available, and my government has worked on various reforms to encourage investments. We need to encourage more opportunities for revenue expansion and minimize trans-shipments from larger ships to smaller ships”, the President added.
He assured the Chairman of the company of his administration’s commitment to collaborating and creating an enabling environment for businesses to thrive in the country, citing Maersk’s previous partnership in the development of the Ogun State container terminal as a proof to fruitful partnerships with the logistics company.
In his remarks, Uggla highlighted Maersk’s longstanding relationship with the country and his belief in the future of Nigeria, recalling that the company has invested over $2 billion in Nigerian ports and other activities.
He harped on the potential of the Nigerian ports to accommodate larger container ships and stressed the need for expanding port infrastructure to meet this demand while reducing the cost of logistics.
The A.P Moller-Maersk’s Chairman expatiated: ”We have seen a significant opportunity for Nigeria to cater for larger container ships. Historically, most of the West African coasts are already served by smaller ships. Currently, we see an opportunity to deploy larger ships to Nigeria.
“To achieve this, we need to expand the port infrastructure, especially in Lagos, where we need a bigger hub for logistics services. The growth potential is hard to quantify.
”We believe in Nigeria, and we will invest $600 million in existing facilities and make the ports accommodating for bigger ships.
”In my humble view, given that Nigeria is the most populous country in Africa, Nigeria should have the best and biggest port and we are very eager to invest, and we will continue that dialogue with the relevant Nigerian authorities to explore further investment opportunities”, Uggla added.
