By Adewale Sanyaolu
Nigerdock, a leading offshore logistics facilities provider has announced a $1.85 billion investment plan to develop full scale wharf infrastructure in Snake Island, Lagos.
The port development move marks a significant strategic shift from the company’s signature upstream oil and gas equipment fabrication and logistics support in the nation’s swamp, shallow water and deepwater petroleum play.
Chief Executive Officer of Nigerdock, Maher Jarmakani . disclosed that the Snake Island port, when completed, will bring on board the third wharf facility in the state and consolidate the status of Lagos as Africa’s biggest and rising maritime hub for global merchant navy.
The investment will help ease cargo handling at existing wharf facilities in Apapa and Tin-Can areas of Lagos State is currently slow due to activity surge.
The investment package according to Nigerdock comes with solid support from the federal government which had given approval for the company to embark on development of full scale port development and operations within the operated Snake Island Integrated Free Zone (SIIFZ).
In the twilight of former President Muhammadu Buhari’s administration, the Federal Executive Council (FEC) had granted approval for Nigerdock to commence, expand, and develop the Snake Island Port through a Public Private Partnership arrangement.
The company had earlier secured authorization from the Nigerian Ports Authority and the Nigerian Customs Service (NCS) to operate cargo handling at the Snake Island free zone.
Jarmakani explained that the port development would be significant part of the cycle of investments to transform the SIIFZ into a full facility island that would provide a smart and eco-friendly operating environment for businesses that would establish in the free zone.
He emphasized that the company has taken a firm stride into commercial investments in development of robust business environment to relieve entrepreneurs of the burden of multiple costs on self power generation, infrastructure development and ESG compliance and sundry facilities.
Establishment of seaport on the island, the company explained, also provides convenient and cost effective import and export activities in a controlled business environment where collocation would afford players a ring-fenced business network.
In its investment outlay, Nigerdock stated that the Public Private Partnership arrangement guarantee initial investment of $1.0 billion; and subsequent investments totaling $850 million across the concession tenure.
It would be recalled that Nigerdock is driving an aggressive investment campaign to transform the Snake Island Integrated Free Zone (SIIFZ) into an exclusive business hub that provides world class business environment for enterprises.
The company earlier announced that it is welcoming businesses to the island’s congenial and low cost enclave that addresses fiscal and infrastructural issues that plague investments in the country.
The public private partnership model adopted in the port development is expected to close infrastructural gaps in the country’s maritime sector; it alsofits into the existing policy on Ease of Doing Business through infrastructure concessions and free zones.
Nigerdock which holds long term lease from the government to operate facilities on the Snake Island till 2091 had secured free zone status for the island, affording businesses in the islet some degree of fiscal cover while providing full advantage of high commercial returns and operations sustainability.
The approval from government which comes with a new 45-year concession agreement for Snake Island Port is set to be a significant milestone for the Nigerian shipping industry, allowing for an expanded operational scope.
The Snake Island ports, when completed, would improve efficiency in cargo handling and reduce turnaround times for vessels, cut the high cost of shipping, and ease the challenges currently experienced in logistics services.
It is also expected that development of the Snake Island port would propel investments in the acquisition of modern terminal equipment and expansion of existing cargo holding facilities, improved efficiency and growth in both ship traffic and cargo.