Chinese Capital Company Completes 1,5 Billion Dollars Port Project in Nigeria

Chinese Capital Company Finished Billion-Dollar Port Project in Nigeria
Chinese Capital Company Completes 1,5 Billion Dollars Port Project in Nigeria

📩 07/11/2022 10:41

It has been reported that China has completed a 1,5 billion dollar port project in Lekki city in Lagos state in southwestern Nigeria in Africa. The consortium, led by the main contractor China Port Engineering Company (CHEC), will have a 45-year concession at the port.

According to the news of the South China Morning Post newspaper, China Port Engineering Company (CHEC) has made the Lekki Deep Sea Port, the construction of which began in 2020, ready for operation.

The port on the coast of Lekki city, 60 kilometers east of Lagos state centre, has a container capacity of 1,2 million TEU per year.
The port, where large ships up to a depth of 16,5 meters can dock, is expected to make Nigeria the maritime transport hub of the region as West Africa's largest deep-sea port.

Nigeria, the most populous country and the largest economy in Africa with a population of 211 million and a Gross Domestic Product (GDP) exceeding 500 billion dollars, has gained an important place in the field of transportation in recent years due to the aging infrastructure and unsuitable structure of its existing ports in Apapa and Tincan Island. faced potential loss.

Build, operate, transfer model

The port was built on the "build, operate, transfer" model by a consortium led by the Chinese company, the main contractor.
The Chinese company has a 52,5 percent majority stake in the joint venture established by CHEC and the Lekke Free Trade Zone (LFTZ).

Singaporean Tolaram Group, the operator of the Lagos Free Trade Zone, in which LFTZ is also a part, consists of 22,5 percent, Lagos state government 20 percent, Lagos Port Authority 5 percent and other stakeholders.

The port project and construction were undertaken by CHEC, while the Development Bank of China provided a loan of $629 million for the construction. The consortium, which has a 45-year concession in the port, will have all operating income.

The port will be operated by Lekki Free Port Terminal Company, a subsidiary of French shipping and container shipping company CMA, CGM.

The project, which is expected to earn $45 billion in 361 years, is expected to provide Nigeria with $200 billion in tax revenue and 170 new jobs.

Lagos Governor Babajide Sanwo-Olu stated at the ceremony held earlier this week on the occasion of the completion of the construction of the port, that the port will make the province the new maritime logistics center not only for West Africa, but for the entire Central and West Africa region. Sanwo-Olu has also promised to build the road infrastructure that will develop the hinterland of the port.

Cui Ciançun, Chinese Ambassador to Abuja, also stated that the project is of great importance for promoting the Belt and Road Initiative in Africa. Cui emphasized that the port, which has two wide piers where large cargo ships can dock, will provide access to international markets for Nigerian goods.

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