Concession has improved ports efficiency, says Transport Minister

Concession has improved ports efficiency, says Transport Minister
… As terminal operators’ investment hits N148bn

Private terminal operators otherwise called concessionaires have invested a princely sum of $925 million (about N148 billion) in terminal development and acquisition of cargo handling equipment.
Minister of Transport, Senator Idris Umar, who disclosed this in Abuja Monday during the 2013 Ministerial Platform organised by the Federal Ministry of Information to highlight the mid-term achievements of the administration of President Goodluck Jonathan, said that the concessionaires invested $475 million (N76 billion) on acquisition of modern cargo handling equipment and $450 million (N72 billion) on terminal development since 2006 when the ports reform programme was executed and cargo handling operations removed from the functions of the Nigerian Ports Authority (NPA) and handed over to private companies.

“In 2006, the Federal Government of Nigeria carried out comprehensive port reforms that made NPA the Landlord and Technical regulator. Government delineated the ports into terminals and concessioned them to private operators. Terminal operators are now responsible for all aspects of cargo handling and terminal upgrading under the concession agreement.

“As a result of the reforms, the overall efficiency in the ports has been steadily improving, and there is appreciable increase in infrastructure provision and maintenance by both the Federal Government and the concessionaires,” the Minister stated.
Umar said that the NPA has completed massive rehabilitation of the East and West Moles (breakwaters) in Lagos at the cost of N16.6 billion.
The rehabilitation work, according to him, was executed by China Civil Engineering Construction Company, while Royal Haskoning and Yolas Consultants served as foreign and local consultants to the project respective.
Umar also disclosed that rehabilitation work on the quay wall apron of the Tin Can Island Port, Lagos has been completed at the cost of N3.64 billion while the rehabilitation and expansion of the NPA headquarters building, NPA House, at Marina, Lagos awarded to Sageto Nigeria Limited at the cost of N5 billion is 42 per cent completed.