Stakeholders in the Nigerian port sub-sector have blamed the under-development witnessed across major ports in the country on series of policy delay and summersault.
They observed that a number of pending ports development projects across Africa might be pointing to a positive outlook for capacity expansion in the region, but the myriads of uncertainties in economic growth become a limiting factor.
Also, the United Nations in its recent report on review of Maritime Transport in 2017, is optimistic that the projects, when completed, will aid trade facilitation in the region.
Some of the pending projects are the $1.5billion Lekki Deep Seaport in Nigeria, and the proposed $2.5billion Badagry Deep Seaport. They are currently facing challenges ranging from economic considerations to inconsistency in policies.
The Chief Executive Officer of TCH Consults, Mr. David Alfred, blamed the development on inconsistencies on the part of the Federal Government.
According to him, some of the suspended projects were designed to fail, as the government failed on some of its responsibilities.
“The construction of the ports have suffered setback, owing to lack of funds. Most of the banks and other financial institutions that initially showed interest in financing the multi-billion naira project have since backed out because the government itself is not committed to the viability of the projects.
“Some of the banks approached by managers of the port were not willing to give financial assistance due to the fear that they might not be able to recoup their money on time, especially when the government that was supposed to give assurance is not talking about it again,” he said.
Another stakeholder, Mr. Donald Okafor, said, “Investors doubt the ability of the promoters of the port to draw cargo traffic to the facility, especially because of evacuation bottlenecks and also, as government has not been consistent in some of its policies. Investors understand that Lekki, for instance, is not the right location for such port.
“Lekki axis is largely a residential area, vehicular traffic in and out is very heavy without the added burden of trucks that would ply that route. What will happen when trucks join the fray on the road is better imagined. Due to this constraint and in the absence of a rail system, evacuation of containers from the Lekki Port to the Western part of the country will be very difficult, if not impossible.
“You can’t move goods up north either, except a new bridge the size of the Third Mainlaind Bridge is constructed around the lagoon. Trucks evacuating goods from the port, however, can head for the eastern part of the country; but then, they will have to travel almost 100 kilometres to link up the Benin-Ore road. Government must come up with a convincing structure if it is determined for serious business.”
Meanwhile, the United Nations Conference on Trade and Development report noted that container port volume in Africa dropped by 1.2 per cent in 2016, but will grow by 1.1 per cent in 2017, and by 2.5 per cent come 2018.
It, however, forecast that world seaborne trade will increase by 2.8 per cent in 2017, with total volumes reaching 10.6 billion tonnes.
Projections for the medium term also point to continued expansion, with volumes growing at an estimated, compound yearly growth rate of 3.2 per cent, between 2017 and
2022.
UNCTAD noted that against the situation in some regions, the projected demand was expected to surpass planned capacity growth (East Coast of North America, China and Oceania).
It stated, “Assuming all planned projects are implemented, it is likely that capacity growth in Africa and Southern Asia will be significant. In Western Africa, for example, a sharp increase in port development projects is being observed, fuelled mostly by Chinese investment in African infrastructure projects.
“Several projects are underway, and others are in the pipeline. Dredging works are in progress at ports such as Abidjan, while ground and soil improvements are being carried out in
Lomé. In some cases, new greenfield sites have been selected to boost capacity, as illustrated by the $1.5billion project in the Port of Lekki Nigeria.”
