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By Bolaji Okunola
Logistics expert, Arno van der Merwe, has declared readiness to help develop Nigeria’s logistics sector which currently sits at a painful crossroads, choking movement for producers and consumers.
Speaking recently, Arno van der Merwe, who currently serves as the Chief Executive Officer, TY Logistics Park, a new Grade-A logistics hub inside the Lekki Free Trade Zone, believes he has a model that can reverse the losses and bleeding in the industry, while disclosing that the challenges are not episodic but structural.
He highlighted underinvestment in quality logistics infrastructure, poor intermodal links between roads, ports and airports, poor congestion leading to clearance delays of 18 to 21 days, customs fragmentation, unreliable warehousing standards, among others. He noted that lack of technology driven operations has also created more damage, contributing to Nigeria’s over $1.7billion annual loss.
Expressing further, he highlighted that the reduction of friction will help fall cost while hinting 100,000 sqm in Phase 1, high-grade racked environments, jointless floors for heavy machinery, system-driven investor management, energy-efficient, green-certified warehouses, 30% lower water and energy consumption, full repatriation rights and zero corporate taxes can help in developing the sector.
Merwe, however, used his Lekki based firm as case study to highlight early market confidence, while disclosing his logistics has begun serving part of the Dangote Refinery. He however emphasized building a Nigerian story despite having led logistics operations in Kenya, South Africa, and East Africa will help proffer a lasting solution.
“We want to make this a Nigerian story. We’ve invested in the assets. We’re here for the long run. If successful, the model could reduce logistics costs, attracts manufacturers back to Nigeria, improve export competitiveness, reclaim cargo currently diverted to neighbouring countries, expand logistics employment within Lagos and the region, strengthen intra-African trade under AfCFTA, in a sector often described as Nigeria’s ‘hidden tax on business while we’re positioning ourselves as the first major attempt to modernize the backbone of the economy,” he stated.
