The Deputy Managing Director of CMA CGM Nigeria, Ramesh Saraf, has raised concerns over the high operational costs at the Lekki Deep Sea Port, stating that operating costs at the facility are triple those of other ports worldwide.
Speaking at a press briefing in Lagos on Friday, Saraf lamented that the multibillion-dollar port — Nigeria’s only currently operating deep sea port, which began full commercial operations in April 2023 — remains underutilized despite its impressive capacity.
“Lekki Deep Sea Port started operation in April 2023 with less than half capacity of cargo, and now less operation is taking place at the port. The cost of operation in Lekki Deep Sea Port is triple the port charges in other ports across the world,” Saraf said.
The Lekki Deep Sea Port, situated within the Lagos Free Zone, boasts three terminals: the container terminal, the liquid terminal, and the dry bulk terminal.
The container terminal, which is the only operational terminal at the port, is operated by the CMA CGM Group. The terminal is said to boast a capacity to handle 2.5 million TEUs of containers annually.
However, Saraf pointed out that operational levels are significantly below capacity, a situation exacerbated by a recent 15% increase in port and marine fees by the Nigerian Ports Authority (NPA).
He said as a result of the increase, transshipment at Lekki Port is now more than three times as expensive as in other ports globally.
He said the steep cost disparity has driven Nigerian importers and exporters to use neighboring ports in Ghana and Cotonou, smuggling goods back into the Nigerian market to avoid the prohibitive fees.
Saraf expressed his frustration, warning that excessive charges could cripple the port’s cargo business.
“Let us not kill the cargo business in the name of increasing revenue,” he said.