Public Private Partnership And Port Efficiency: The Nigerian Experience

By

Habib Abdullahi
Managing Director, Nigerian Ports Authority
At the 12th Intermodal Africa Conference & Exhibition
Lagos Oriental Hotel, Lagos, Nigeria

March 2014

Contents
Introduction
Existing PPP Structures in NPA

Impacts of PPPs on Nigerian Ports

Investment Opportunities
Conclusion

Introduction
Ports in Nigeria
Lagos Port Complex

Tin Can Island Port

Rivers Port

Delta Port

Onne Port Complex

Calabar Port

Introduction Contd
Prior to the Port Reforms in Nigeria, port services were characterised by :
Inadequate funding
Ineffectiveness and inefficiency
Bureaucratic bottlenecks
Multiple and uncoordinated security Agencies
Decaying Port Infrastructure
Restive dock labour
Inadequate cargo handling equipment etc
To eliminate the weaknesses, Government embarked on the port reforms of
2006 which significantly increased the level of private participation in the port
sector.
4

Existing PPP Structures in NPA

Terminal Concessions
Joint Ventures

Management Contracts

Terminal Concessions

PORTS

NO. OF CONCESSIONS

Lagos Ports Complex

6 + 1 (ICD)

Tin Can Island Port Complex

4 + 1 (BOT)

Rivers Port

Delta Ports Complex

Onne Ports (FOT & FLT)

Calabar Port

Total

24 + 2

ICD Inland Container Depot

BOT Build, Operate & Transfer
6

Joint Ventures
MAIN ACTIVITY

NO. OF JVs

3
Channel Management (LCM, BCC &
CCC) - Dredging, Surveys, Navigational
Aids, Wreck Removal e.t.c
Towage Services

CHANNEL DREDGING
Ship Building & Repair

Ship Waste Management

All Pilotage Districts

WRECK REMOVAL

Impacts of PPPs on Nigerian Ports

More efficient port services
Upsurge in cargo throughput

Reduction in cargo dwell time in ports

Improved vessel turn around time
Deeper and safer navigation channels
Improved port infrastructure through rehabilitation, upgrading and
greenfield developments etc

Trend of Cargo Throughput (Mt) Excl. Crude Oil Terminals

POST CONCESSION

PRE-CONCESSION

Millions
90

83
77

80
70

64

77

66

57

60
50
36

40
30

77

37

40

41

45

46

29

2012/2013 drop in
throughput attributable
mainly to:
- Global economic
recession
- Security challenges in
the Gulf of Guinea

20
10
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Turn Around Time of Vessels (Days)

PRE-CONCESSION
12

POST CONCESSION

11.3

10

7.91

7.89

7.4

7.01

6.7

6.44
6

On-going automation of
processes like e-payment
solution will guarantee
quicker delivery

5.31

5.9

5.6
5

6.2

6
5.2

Quest to increase private

participation in the
provision of towage
services is bound to
further impact turn around
time

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

10

WAFMAX Inaugural Call at Onne Port in Dec. 2013

(the result of channel dredging campaign by one of the JVs)

11

Port Infrastructure/Facility Upgrades

FLT 4 DEVELOPMENT
Before Dredging June 2005

During Piling Feb. 2006

12

Port Infrastructure/Facility Upgrades Contd

FLT Transformation
1985

2013

13

Port Infrastructure/Facility Upgrades Contd

FOT Transformation
1995

2013

14

Port Infrastructure/Facility Upgrades Contd

Calabar Port Transformation

1985

2013

15

Port Infrastructure/Facility Upgrades Contd

Warri Oil & Gas Free Port Transformation

1990s

2013

16

Investment Opportunities
Channel Management;
Pilotage and Towage Services
Utilities Water & Electricity (Independent Power Project)
Information & Communication Technology (ICT)
Greenfield Port Developments

17

Greenfield Port Developments: Deep Sea Ports

Lekki

Ibaka

Agea

Deep
Sea
Ports
Ogidigben

Badagry

Olokola

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Conclusion
The increased participation of the private sector has been a key ingredient
in improving the fortunes of Nigerian Ports
Several areas still exist in the ports that are open to further private sector
participation e.g. greenfield deep sea port developments

A subsisting Act of Parliament gives backing to PPP transactions in

Nigeria. This is in addition to the political will of Government.
The Nigerian environment and its port sector in particular is thus
conducive for private sector participation.

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Thank you
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