‘We Believe Strongly In Nigeria Economy’ – Maersk Confirms Plans To Invest $500 Million In Port Sector

Danish shipping and logistics company, AP Moller-Maersk, has confirmed plans to invest over $500 million in upgrading Nigeria’s port facilities.

Naija News reports that there has been controversy surrounding the agreement between APM Terminals and the Federal Government on its proposed plan to invest in the country’s port sector.

However, the Chief Executive Officer of APM Terminals, Keith Svendsen, in a statement titled “Our Vision For Nigerian Ports and Growth”, revealed that APMT strongly believes in the future prospect of the Nigerian economy, stressing it is on the verge of concluding a USD 115m upgrade project in Onne Rivers State.

Svendsen stated that AP. Moller-Maersk has been present in Nigeria since 2006 and has invested $600 million in equipment acquisitions, including trucks and container cranes, advanced operational controls, digital interfaces, and extensive employee training.

Svendsen said the fresh investment is to ensure the terminal has sufficient capacity and capabilities to service the south/eastern Nigeria market and the growth expected in coming years, while the Apapa port continues to offer unique access to Nigerian importers and exporters to international markets through not just road, but also rail and waterways, utilizing barges.

He said Nigeria is a key market in Africa and that APMT is proud of its central role in enabling containerized trade between the country and the rest of the world.

The statement read, “Our two container terminals in Lagos and Onne handle about half of the containers going in and out of Nigeria, and our vessels transport close to a third.

“APM Terminals have been operating in Nigeria since 2006 and have invested more than USD 600 million during this period in equipment, including trucks and container cranes as well as in advanced operational controls, digital interfaces, and extensive training of employees to provide customers with athoroughlyy modern and safe experience. We employ about 2,500 people directly (99% Nigerians) and indirectly create employment for about 65,000 according to a recent socio-economic study.

“At APM Terminals, we believe strongly in the future prospects for the Nigerian economy, and the long-term opportunities that the current economic reforms and invitation for international investments will generate.

“At Onne, we are concluding a USD 115m upgrade project to ensure the terminal has sufficient capacity and capabilities to service the south/eastern Nigeria market and the growth expected in coming years, while the Apapa port continues to offer a unique access to Nigerian importers and exporters to international markets through not just road, but also rail and waterways, by means of barges

“Having been present there for close to two decades, we believe that Lagos, as the main port, needs further investments to cater for increasing trade volumes and to be able to attract large container vessels. While greenfield terminals like Lekki and later on Badagry will support economic growth in the long run, the more urgent requirement is in our view to upgrade the existing port infrastructure to ensure road, rail and barge networks can connect directly to mainline shipping.

“We have developed plans to undertake the necessary terminal upgrade investments in Apapa to give access to vessels with deep draft and requiring large ship-to-shore cranes. We seek to do this under a long-term agreement with the government to support our ambition to continuously improve the import and especially export opportunities for the country, creating jobs and diversifying opportunities locally.

“As we are still not at the finish line, we have intensified talks with the administration and port authority to make these plans concrete and I’m pleased with the significant progress made towards implementation. That is why I earlier this year publicly told about the proposal to invest more than USD 500 million that we have discussed with the President Tinubu both in February,  and which we further elaborated in late April. It should go hand-in-hand with a long-term partnership.

“For us in APM Terminals, it is important that we not only operate highly efficient terminals, but also that we play a role contributing to the development of the local communities and bring in opportunities for growth and new prospects for Nigerians”

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