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Tuesday, 18 August 2015

APMT considers $2.1bn African port investment

Danish port operator APM Terminals is reported to be considering an investment of $2.1 billion to develop a new African megaport at Badagry  in southern Nigeria.

If given the go ahead the port would be the second-largest port in Africa and would amount to the largest ever single investment by APM Terminals parent company Maersk Group.

“We are currently purchasing property from the state and will start construction later this year. The port is scheduled to be completed in 2019,” David Skov, the managing director for APM Terminals in Nigeria, said in comments to Danish newspaper Børsen.

“Globally, it will be APM Terminal’s largest ever investment and marks a strategic shift to multi ports. It means we will supplement our own experience in container ports with the establishment of a free zone, an oil port and a bulk port, so in other words a complete port.”

Although these comments present a bullish outlook for APM Terminals project in Badagry it is not the first time that the investment has been touted. In 2012, APMT announced plans for the port citing a commissioning date of 2016.

The proposed port at Badagry  follow  a deal signed by APM Terminals late last year to develop a $1 billion expansion of the Port of Tema in nearby Ghana. The large scale project will add 3.5 million TEU per annum and is expected to be commissioned in 2018.

 The deal will see APMT partner with Bolloré Africa Logistics (Meridian Port Holdings) and the Ghana Ports and Harbours Authority (GPHA) to deliver the project via a joint venture structure known as Meridian Port Services (MPS).

The first phase of the Tema expansion will provide breakwater, dredging and quay wall foundation trenches, as it intends to develop at least five new berths (two for containers, two for multi-purpose and Ro-Ro, and one dedicated to passenger and cruise vessels).

Phases 2, 3 and 4 should add more container terminals and food/fruit terminals to the cluster, while phase 5 will target the oil rigs market along the West African coast.

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