How $1.5 billion Lekki Deep Seaport will change the nation’s Port system in 2024
The commissioning of the $1.5 billion Lekki Deep Seaport, in January 2023, has brought fresh hopes to the nation’s Port operations. This is evidenced as Nigeria is beginning to recover cargos worth billions that were previously lost to other seaports in the West Africa sub-region.
In spite of all the challenges that confronted the Maritime sector in 2023, Lekki Deep Seaport, which is the first deep seaport in Nigeria, has brought fresh hopes for the nation’s port system. The Managing Director of the Nigerian Ports Authority (NPA), Mohammed Bello-Koko, described it as ‘the true game changer’.
With its ship-to-shore (STS) superpost-panamax cranes, it has the capacity of handling an annual throughput of 2.7 million TEU. A section of the port will also have a liquid bulk terminal with three additional berths with capacity to handle vessels up to 169,000 dwt. Other seaports in Nigeria are river ports.
The port, which is a multi-purpose, deep sea port, located in the Lagos Free Zone, started full commercial operations in April 2023.
The port is modern and efficient and envisaged to generate over 170,000 direct and indirect jobs, billions of dollars in tax revenue for Lagos and the host community and a turnover of $361 billion over the next 45 years
Recalls that the House of Representatives, in December 2020, noted that Nigeria’s seaports received barely 10 percent of West African imports, out of about 60 percent destined for Nigeria, that others are lost to neighboring countries, adding that the country loses a whopping $7 billion revenue annually to other ports in the Sub-region.
To change the narrative, some private investors embarked on the most ambitious infrastructure projects in the West Africa sub-region.
Located approximately 40 miles to the east of Lagos the port covers over 90 hectares, it represents the first expansion of the country’s ports in 25 years and is part of an ambitious plan of development for Africa’s biggest economy.
The MD of NPA, Mohammed Bello-Koko, in an exclusive chat with our correspondent said market studies carried out by the Authority indicated that the demand for containers in the region is expected to grow at a steady Compound Annual Growth Rate (CAGR) of 12.9 percent in 2025. Adding that given the expansion constraints on the existing infrastructure, the capacity in Lagos was incapable of meeting the growing demand.
“The strategic location, flexible and optimized layout, and modern facilities give Lekki Port a competitive edge over any other port facility in the West African region,” the NPA boss said.
Prior to the operationalization of the port, which recently acquired the status of a trans-shipment hub, the African continent lacked a regional trading hub aside from South Africa, which may be described as the trading hub for Southern Africa.
It is true that the speedy construction and completion of the deep seaport has made
Nigeria acquire the status of West Africa’s trading hub.
The total cost of construction of the Lekki seaport was estimated at $800m while fixed assets cost stood at $1.53bn.
The project is unique in Africa as the continent’s coastline has relatively few natural harbors large enough to accommodate today’s modern ships. In addition to being the first of its kind for Nigeria, it is also one of the largest ports in sub-Saharan Africa.
The first phase, which has been completed, developed the overall layout including a five-mile-long navigation channel, a nearly 2,000-foot turning basin, a 62-foot depth throughout the port, as well as the breakwater and berths.
Presently, Nigeria has started wrestling cargoes meant for Nigerian ports from neighbouring countries including Benin Republic, Togo, and Ghana.
NPA said with the inauguration of the Lekki Deep Sea Port in Lagos and improved port efficiency, many cargoes have been pulled from the seaports of the neighbouring countries.
The first commercial vessel berthed at the nation’s first deep seaport on 1 April 2023 with a draft of about 16.5 metres.
“I must say it is the first time a government will start construction of a port, finish and commission it before leaving office.
“As you know, the Lekki Deep Seaport has been in the brain box for over 10 years; it is this administration that came in and gave all the necessary support through the Ministry of Transportation and the Nigeria Ports Authority (NPA).
“They have done the test run on all the necessary equipment, they have done their recruitments, people have been training and the vessels have started coming in, at least, we had a vessel that came in to take out empty containers and by April, we expect that the first commercial vessel will start coming.
“So business has started actually in Lekki Deep Sea Port. So, everything is ready and it is going to be automated as we said and all the gaps we observed either in Tincan Island Port or Apapa, whether in terms of scanners, equipment and others, you will find all of them in Lekki,’’ Mr Bello-Koko said.
On the “game-changer’’ status of the Lekki Deep Seaport, the NPA boss explained that, unlike the two weeks, it takes for cargo clearing at Apapa port in Lagos, at Lekki it would be out in just two days
Evacuation of cargos from Lekki by road
Cargoes now exit Lekki Deep Seaport by roads seamlessly as the federal and state government have completed the construction of alternative routes to the Lekki-Epe Expressway.
With the alternative road construction, clearing agents and importers hauling cargoes out of the Lekki Deep Seaport now do it seamlessly, thereby, making it an alternative to the already congested Apapa and Tin-Can ports.
Before now, Lekki-Epe Expressway was the only route out for evacuating cargoes out of the multi billion dollars facility and that created panic among importers, exporters and road users who feared a return of the Apapa traffic.
Currently, there have been alternatives for cargo evacuation for free flow of traffic out of the facility.
However, alternative routes to access and exit the first deep seaport in Nigeria are, Ijebu-Ode-Epe-Lekki-Eleko Coastal roads; Lekki-Ajah-Eleko Coastal roads and IkoroduItokin-Epe roads.
With the alternative routes, about 60 percent of cargoes cleared from Lekki deep seaport now leave by road while 40 percent exit through badges.
Confirming the development, a management staff of Lekki deep seaport said, concrete expansion of the Lekki-Epe expressway from Ajah to Eleko junction is already completed. Also, the dualisation of the Lekki-Epe road from Ibeju-Agbe to T-Junction in Epe is at 95 percent completion stage.
According to the source who craved anonymity because he’s not authorised to speak, the upgrading of the Itokin to IjebuOde expressway is completed, while the expansion of the Oke-Oso/Itokin road to Araga-Poka road is also completed.
He, however, disclosed that the Ijebu-Ode to Epe road has also been completed with two toll gates mounted on the road.
“With the completion of these roads, Lekki Port now enjoys easy access to the hinterland surrounding its location. The roads have been completed as Cargoes can now leave Lekki Port through the Ijebu-Ode to Epe road, which is completed. Also, the Ikorodu-Itokin road leading to Ijebu-Ode too is completed.”
“Furthermore, the concrete paving and expansion of the Lekki-Epe down to Ajah road is almost completed. With these roads completed, there would be delivery of cargoes at cost saving options without any stress or hassle,” he stated.
Excitement as another large container Vessel berth at Lekki Deep Seaport
The entire environment at the port was filled with excitement as the Nigerian Ports Authority (NPA), on Sunday took delivery of yet another large container Vessel.
The vessel measuring 367M in length over all christened “Maersk Edirne” has a Breadth of 48.2 and carried a Gross Registered Tonnage (GRT) of 142,131metric tonnes and a Deadweight Tonnage (DWT) of 147,340 metric tonnes, constituting 3,376 total cargo onboard was navigated to safety by the highly experienced and thoroughly equipped Pilots of the NPA.
This development validates the assurances given by the Managing Director/CEO Nigerian Ports Authority, Mr. Mohammed Bello Koko during the signing of the Presidential / Ministerial Performance Bond in December 2023, that “the Authority under my watch is poised to provide the leadership and technical guidance required to maximize the potentials inherent in our marine and blue economy”.
Responding to the milestone achievement on Sunday, Bello Koko commended the Honourable Minister of Marine and Blue Economy, His Excellency Adegboyega Oyetola for the consistent support and endorsement of the Authority’s initiatives and investments in employee upskilling and equipment renewal which made this milestone seamlessly achievable.
Before this time, the largest commercial vessels to sail on Nigerian waters were “MV Stadelhorn” and “MSC Maureen” at Onne Port and TinCan Island Port Complexes respectively. Thus, the berthing of a ship measuring 367 meters at Lekki Deep Seaport represents a quantum leap forward.
The Lekki Deep Seaport has by this feat in addition to its pioneering of full automation and facilitation of transhipment proven its readiness to exceed stakeholders’ expectations.