Lekki Port to generate $361bn revenue, 200,000 jobs

AYOOLA OLAOLUWA

After years of expectations, the Lekki Deep Sea Port – a multi-purpose deep sea port at the heart of the Lagos Free Trade Zone (LFTZ) championed by the trio of Tolaram Group, a Singaporean company, Lagos State government and the Nigerian Ports Authority (NPA) – is completed and ready for operations.

The ambitious port project, apart from the Dangote Refinery, is another venture that is being closely watched, with many Nigerians agreeing that it could be the economic game changer that would lift Nigeria’s stalled economy from the doldrums.

“There’s a lot riding on these projects (Dangote Refinery and Lekki Deep Sea Port). Of course, government officials and economic experts on their payroll say that every time, if for no other reason than to trumpet their own achievements and sustaining their retainer-ship.

“But this time around, even the most cynical among us see the importance of the two projects”, a Senior Lecturer in the Economics Department of the Osun State University, Osogbo, Dr. Rasheed Oyaromade, had declared in January 2022.

The long wait finally ended on Monday, October 31st, 2022, when the contractor handling port construction, China Habour Engineering LFTZ Enterprise (CHELE), announced the completion of construction work and handed it over to the container terminal operator, Lekki Free Port Terminal, in readiness for the start of port operations.

Speaking during the Construction Completion Ceremony (CCC) at the port located at Itoke Village, Ibeju Lekki, the Vice President of CHEC, who is also a director of Lekki Port, Mr. Wu Di, disclosed that work on the project officially started on June 15, 2020 and was completed on Monday, October 24, 2022.

The construction company, a subsidiary of China Harbour Engineering Company Limited (CHEC), the Engineering, Procurement and Construction (EPC) contractor, also handed over the port to the concessionaire, Lekki Free Port Terminal, a subsidiary of CMA/CGM group who will operate it.

Also speaking at the ceremony, Lagos State Governor, Babajide Sanwo-Olu, promised a speedy completion of the access roads leading to the port, saying that all shanties along the road would be destroyed to pave way for a six lane port access road.

The state governor, whose state is one of the port’s shareholders, expressed delight with its completion while delivering his speech.

Sanwo-Olu reaffirmed Lagos State government’s commitment to the timely delivery of the road infrastructure network around the Ibeju Lekki axis to ensure the seamless evacuation of cargo from the port.

“I want to use this opportunity to assure our private players on this project, and a commitment that Lagos State brings to bare in ensuring that this location is not just going to be a gridlock.

“You have seen that the construction of the road from Eleko Junction has continued towards Aka. I have also seen that the construction from Eleko Junction down here is also ongoing.

“It is important for me to give you that further reassurance that we would stop at nothing, in pushing this road to completion as fast as possible.

“I am meeting with the contractors and giving them a matching order that the road construction that would evacuate all the containers from here does not constitute any gridlock whatsoever.

The governor promised to work with investors to ensure the ease of doing business at the Lekki Deep Seaport.

In his remarks, the Chairman, Board of Directors, Lekki Port, Mr. Biodun Dabiri, expressed profound appreciation to the promoters of the project, CHEC and Tolaram for the bold decision to invest in maritime infrastructure which will help in Nigeria’s journey to economic prosperity.

Dabiri acknowledged the critical role played by Governor Babajide Sanwo-Olu in resolving the various challenges encountered in the construction of the port, especially during the COVID-19 pandemic and attendant lockdown.

“We are pleased to celebrate the completion of construction of the port and the effective handover of the facilities by Lekki Port from the EPC Contractor, CHELE, a subsidiary of CHEC”, he said.

Also speaking at the event, the General Project Manager of CHELE, Mr. Xie Xianju, expressed great delight that the construction was now completed.

He noted that the port would be the destination of choice because it is the first deep sea port with a capacity to take large vessels.

He commended the team, partners and suppliers for their contribution to the successful completion of the construction.

Delivering the goodwill message on behalf of Tolaram (promoter and shareholder), the Managing Director of the Lagos Free Zone, Mr. Dinesh Rathi, expressed delight at the timely completion of the construction of the port.

He noted that the port would further position LFZ as the next frontier for investment in Nigeria and increase foreign direct investment to Lagos State and Nigeria.

The Chinese Ambassador to Nigeria, Ambassador Cui Jianchun, commended CHEC for displaying excellence in their project skills and promoting China’s commitment to Africa’s infrastructure development drive.

He noted that the project was a good example of what can be achieved when Nigeria and China cooperate, saying he looked forward to more of such projects.

The Lekki Port has been described severally, as a game changer that will boost the growth of the Nigerian economy, creating about 170,000 direct and indirect jobs, generating approximately $361 billion during the period of the concession, and generating over $201 billion in revenue for both Lagos State and the Federal Government.

Conceived in 2008 during the administration of former Governor Babatunde Fashola, construction work on the port spread over 90 hectares of land in the heart of the Lagos Free Zone did not start until mid 2012.

The Tolaram Group, which has the concession to build and operate the port for 45 years, has the highest stake of 75% in the project, followed by the Lagos State government 20% and the Nigerian Ports Authority (NPA) 5%.

Financed by private investors and a consortium of banks who have funded the project with $2 billion so far, the port which is being developed in phases has the China Harbour Engineering, a subsidiary of China Construction Company, as the builder.

Its phase one, which was handed over on October 31st, is made up of three container berths equipped to handle more than 2.7 million TEUs — one berth for dry bulk goods and two berths for liquid cargo.

Once operational, the seaport which is the deepest port in Sub-Saharan African region, is part of the promoters’ quest to capture regional trade in a region with massive growth potentials but poor infrastructure.

In the second phase, capacity will be expanded to six million TEUs containers per annum, with ships able to transport over 14,500 containers, as well as a significant volume of liquid and dry bulk uncontainerized cargoes.

Works done by the contractor are dredging and reclamation (100 percent completed; quay wall 100 percent completed; two breakwaters (one rubble mound with geo-bag core for the near-shore sections and a composite breakwater for the more exposed sections (100 percent completed and landside infrastructure 100) percent completed.

The secondary breakwater was replaced by a barrier which consists of a core from sand internally fortified by a protective geo-bag layer, a revetment on the harbour side and an artificial beach on the seaward side.

With its completion, the Lekki Deep Sea Port becomes Nigeria’s 7th seaport after the Lagos Port Complex; Tin Can Island Port (TCIP), also in Lagos; Calabar Port (Cross Rivers State); Delta Port (Delta); Rivers Port (Rivers State) and Onne Port (Rivers State).

According to maritime experts, with the completion of the port, Nigeria will now be able to accommodate bigger and heavier vessels and compete with smaller West African nations with deeper sea ports.

“The trend for container ships to become ever larger and heavier has forced ports within the region to compete with ever deeper navigation channels, longer wharves and more sophisticated crainage.

“So, kudos should be given to the promoters of the project as the Lekki Deep Sea will be able to accommodate ultra large ships able to transport more than 14,500 containers”, said Tayo Alasoadura, the CEO of Lesban Global Services, a freight forwarding firm based in Lagos.

BH gathered that the port is expected to contribute over $361 billion to the government as revenue and create over 200,000 jobs over the term of the concession which is 45 years.

Apart from boosting the economy of of the host city, it is also expected to spur the growth and industrialisation of adjoining areas of Ajah, Epe, and Lagos State as a whole.

Already, a number of new key road and bridge projects and expansion of existing highways are currently being developed, connecting the port further into the hinterlands.

From left: Director-General, Debt Management Office, Ms. Patience Oniha; Chinese Ambassador to Nigeria, Mr. Cui Jianchun; General Manager of China Harbour Engineering LFTZ Enterprise (CHELE), Mr. Xie Xianju; Chairman, Board of Directors, Lekki Port LFTZ Enterprise Limited (Lekki Port), Mr. Biodun Dabiri; Lagos State Governor, Mr. Babajide Sanwo-Olu and Chief Finance Officer, Lekki Port, Cai Pingzhen, during the Port Construction Completion Ceremony held on Monday at the Port, Itoke Village, Ibeju Lekki, Lagos
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