Concessioning - lining up for Nigeria’s ports
Feb 28, 2004
No less than 110 potential investors have lined up to take over the management and operation of Nigerian ports, following an invitation from the West African country’s government for potential bidders to show their interest.
The ports listed for privatisation or concessioning include Apapa (Lagos), Tin Can Island (Lagos), the Lagos RoRo Port, and the ports of Calabar, Port Harcourt, and Calabar as well as the delta ports of Koko on the Benin River and Sapele.
Among the companies who have expressed an interest are well-known port operators AP Møller, P&O Ports, P&O Nedlloyd, Delmas (Bolloré Group), and Panalpina Nigeria Ltd who already have an operating interest in the ports concerned.
The director-general of Nigeria’s Bureau of Public Enterprises officially opened the expressions of interest last week in the presence of dignitaries and representatives of CPCS Transcom International, the Canadian specialist advising the government of the concessioning project.
The DG said that only competent companies would be granted concessions to operate Nigeria’s ports. Pre-qualified candidates would be notified by March 3 while due diligence would be conducted and completed by April 23 this year. It was expected that financial and technical bids would be made by the middle of 2004.
Under the concessioning policy set out the Nigerian Ports Authority will act in future in a landlord regulatory capacity, with concessionaires having responsibility for the provision of equipment and superstructure at the ports.
Large-scale retrenchments are expected to follow the process.