The revelation that $600million investment is heading to Nigeria after $115m had just been exhausted has boosted confidence in Nigeria’s investment environment......See Full Story>>.....See Full Story>>
This adds to positive pronouncements by foreign direct investors (FIDs) who thronged the Onne Oil/Gas Free Zone last week, indicating readiness to invest more, sending positive signals about Nigeria’s economy.
This was the highlight of the commissioning of a $115m upgrade of the West African Container Terminal (WACT) in Onne by APM Terminals worldwide.
Kickstarting what appeared to be positive review of Nigeria’s maritime investment profile, Olaf Gelhausen, Chief Operating Officer (COO) of APM Terminals, said that the $115 million investment was a bold statement of their faith in Nigeria’s economic potential.
“This investment ($115m plus the $600m) on the way is sign of our unwavering belief in Nigeria, and a vote of confidence in Nigeria’s future, growth.
“As Africa’s largest economy and most populous nation, Nigeria stands on the brink of remarkable growth. We are proud to be catalysts in this journey, transforming WACT into a world-class facility that is lifting standards to drive trade and prosperity across West Africa.”
He added, “The transformative upgrade project at WACT embodies APM Terminals’ vision of lifting standards in the industry. We’re enhancing capacity, redefining customer experience, and forging stronger partnerships with the Nigerian government to lift global trade.”
In his welcome remarks, Jeethu Jose, the MD of APM (West Africa), said their investment proves love, unity, and collaboration. “It is not just about celebration but shared vision to make Nigeria the African hub. Safety and security are important to us. The deployment of close circuit television (CCTV) and other facilities have made huge impact. It has delivered highly trained workforce. This facility is foremost in Africa, shaping a brighter future.”
He mentioned some of the facilities that now stand Onne Port as one of the best in Africa as solar power system. There is the expanded yard space, updated Traffic Management for safer environment, a dedication for dedication to decarbonising of operations.
Jose also stated the corporate social responsibility status of APM Terminals thus: “Our company has been high on corporate social responsibility (CSR) especially in education, health, and infrastructure for the immediate community and the region.
“We remain grateful to the Nigerian government for approval given in 2021. This is just the first step for more in Nigeria.”
It was gathered that the project boosts faster turn-around of cargo and increased facility. It is said to have delivered modern logistics, multimodal connectivity, solar power, operational excellence, all aimed at lifting global trade.
The CEO of APM Terminal – Nigeria, Frederik klinke, raised the hopes when he said Nigeria is centre of gravity in African trade. He again mentioned the about $600m investment coming to make Nigeria’s operations bigger and faster. Later in an interview, he clarified that the fresh investment will look at Lagos (Apapa), saying it represented the future of Nigeria’s trade.
The Chief Finance Officer, APM, Courage Obadegbony, said tons of sweat and millions of dollars went into the effort. “It began from 100percent swamp area in 1999 to stevedoring in 2001 to 2006. At that time, vessels had to call with their own cranes.
“By 2007 to 2021 (post concession period), the company achieved basic capabilities with reefer stackers. Then, the Onne Terminal Upgrade (OUT) project. Major feat was a 4million-man-hour no lost time incident. The next stage is the present brand-new terminal with 100percent reclamation, Customs facilitation, canteens, offices, etc. It also has renewable energy.”
He gave technical details of the capacity and other accessories to show it’s the best in the West African region. He revealed that Onne facility has led to 33percent export growth with activities scaled up to 100percent. Foreign trainings for staff are equal to anywhere in the world.
Government speaks:
The Vice President, Kashim Shettima, represented by the Personal Assistant to the President on Subnational Infrastructure (Office of the Vice President), Musaddiq Mustapha, said: “This is testament to our administration commitment to provision of infrastructure. This project will create jobs and wealth. It is evidence of Nigeria’s competitiveness in global trade.
“We are prioritising infrastructural facilities such as roads because of its boost to trade. This is a good effort.”
Minister of Marine and Blue Economy, Adegboyega Oyetola, represented by the Permanent Secretary of the Ministry, Olufemi Oloruntola, in his keynote address, said the project would boost the foundations of the new Blue Economy.
He said the Customs would continue to get FG support, and that more concessions were on the way in the port system.
Customs:
Most industry players in the hall whispered the ability of the Customs Onne to have generated substantive part of N5.1trn that was the national figure in 2023.
When he took the floor, the Comptroller-General of the Nigerian Customs Service, Bashir Adewale Adeniyi, noted that the Onne project would help much in decongestion of ports so as to use ports as driver of international trade.
He also said the project is a bold step towards the blue economy, and the Ministry should be proud. “This adds to the many other projects that will boost trade such as the Lagos-Calabar Coastal Highway worth trillions of naira, the national single window which had been in the drawing board for over 20 years, etc.
“This project (WACT) will help the need for faster and cheaper port services. This is the fruit of concessioning and it has done Nigeria a lot of good.”
He mentioned a major challenges, saying containers imported in violation of Nigeria’s laws such as the over 800 arms, dangerous drugs, few months back gave the port a bad name. New seizures were later announced same day.
He said: “Merchants of death seem determined to give the Onne Port a bad name. Let us all join hands and run them out of business by sharing intelligence through collaboration.”
To investors, the CG said Nigeria is an area of big profits, and where there are big challenges, there is big profit.
The executive secretary, Nigeria Shippers Council, Pius Akutah, hailed President Bola Ahmed Tinubu as one that he said has diversified the Economy, and there is big focus on marine economy. “It is evidenced in the coming of $600m investment from APM Terminals (WACT) group. We assure you that you will reap profit from the proposed investment. You are a beacon of hope in this sector.”
The Managing Director of Nigerian Ports Authority (NPA), represented by the Executive Director Marine and Operations, Olalekan Badmus, said focus is on eastern ports to play more central role and ease pressure on western ports. “This investment is Onne Port by APM Terminals will attract more foreign investments. Now, large vessels call eastern ports, and our ports are the gateway to the Nigerian economy.”
George Akume, Secretary to the Federal Government, represented by Babatunde Bolaji Bernard, a professor and Senior Special Adviser (Technical), said the FG is very happy with APM Terminals. “This facility will boost the internally generated revenue (IGR) through Customs collectibles, and Onne alone may contribute up to N3 trillion of the N5.1trillion all the ports are expected to collect per annum.
“We hope your investment rises to $1b instead of $600m. President Tibubu is building a firm foundation with roots. He is embarking on long-conceived project ideas such as the Lagos-Calabar highway, the blue economy, etc. He has exhumed them and started them.”
Johnson Ewalefoh, the Director-General of the Infrastructure Concession Regulatory Commission, said Port Concessioning of 2006 is now yielding fruits, and that other ports must copy this. “Investments are taking place. PPP is ahead to attract the world to Nigeria. He added that more concessions were coming.
The House of Representatives Committee on Commerce was represented by Awaji Abiante who said as a young worker in NIMASA, the place was mere swamp. “Turn-around time is key in the maritime industry.
“We implore the business community to take advantage of this burgeoning infrastructure here in Onne.”
He however urged APM Terminals to bring businesses close, and not to leave them faraway in places. He said the House of Reps is ready to make laws that would help Onne Free Zone to develop faster and make investments more stable here, saying suggestions were welcome.
The Rivers State Commissioner of Environment, Sydney Gbara Tambari, said the governor was very excited about what was happening in Onne Port and that he has commended Mr President.
“Rivers State is ready to partner with any FG agency that has projects in this state. That is why the state government encourages security in the state because we need more investments so the state can return to how it was in the past.”
The MD, Oi/Gas Free Zone Authority, Bamanga Usman Jada, said the facility is the frontrunner, and Nigeria is the first place to introduce this concept and others copied. He also said Onne is also the most successful project and one of the best around the world. “Economic policies are working and investors are willing to commit more funds here.
“Thank you, Mr. President, for the N33bn committed to the East West Road which will definitely boost export. There are 170 companies (investors) in this Free Zone Authority. Intels developed this place.”
He said APM Terminals is a very responsible and that their CSR policy is working because their workforce is made up of over 98percent of Nigerians. “Investments in Onne Port especially by APM Terminals will double in a short time.”
Executive Director, Cabotage Operations, NIMASA, said Onne Port connects all of Nigeria and the world.
The Customs Agents chairman, Emenike Nwokeji, pleaded for the road. “This facility is built for us. Before WACT came in, it was a swamp. So, they have done great.
“My appeal is this: Onne Port is an oil/gas logistics base but agents go through hell along this road. We are glad to hear the road has been awarded again, but we appeal that it be fastened up.
“We need may scanners to facilitate business here. We salute the APM Terminals but we ask that this be extended to Apapa Port.
“We marketed for Onne to get businesses when they appealed to us to appeal to businesses in the east to use Onne Port. Now that our lobbying has worked, we hope the authorities will keep faith with us
“By what has happened, all agencies are now under one roof in Onne port, and it is good.”
An official of Maersk said it is good to make a difference in Nigeria, and create a good enabling environment. “We are proud of APM Terminals belief in Nigeria. It is better if you can make things easier. Consider other ports along the coastline. If you can make things easier, more investors will come.”
Officials of the Shippers Council said at an interview after the commissioning that the African Continental Free Trade Agreement (AfCFTA) regime would require huge port infrastructure. “Port infrastructure is next focus and this will make Nigeria a hub for logistics market.
Conclusion:
It became clear that the concession policy of the FG in 2006 which was largely vilified has become the cornerstone of the building of the maritime economy. In this, the policy seems to find expression in Onne Port.