APM Terminals and their Socio-Economic Impact to the West Africa Economy – Part 1
In 2005/2006 the Federal Government of Nigeria in its efforts to improve port efficiency and reforms adopted the landlord model for port management. What exactly is this model about, you may ask? The landmodel involves the transfer of cargo operational obligations to private investors while retaining the public ownership of the port infrastructure. This means the port authority acts as regulatory body and as landlord, while port operations are carried out by private companies. The concession plan for terminals in Nigeria usually spans within a period of 10-25 years on lease terms.
APM Terminals operates one of the world’s most comprehensive port networks. They have a network of 74 terminals globally one of which is located at the biggest container terminal in West Africa, Apapa Container Terminal. APM Terminals is on a concession plan for 25 years which commenced on April 3, 2006. APM Terminals’ Lilypond Inland Container Depot (ICD) is located just 4 km from the Lagos Port Complex, Apapa and Covers an area of 120,000 m2 with an additional capacity of 7,000 TEUs.
APM Terminals has invested greatly in Apapa Container Terminal since its concession. The total investment by the company since 2006 till date is about $438million. These investments include but not limited to port infrastructure development, modernisation of the terminals IT hardware and software systems, modern cargo handling equipment. These investments have significantly contributed in improving productivity at the ports and has been instrumental to reduction of the long waiting times for vessel berthing.
APM Terminals investments have significantly contributed to the socio-economic development in Nigeria by improving trade activities between Nigeria and other countries and is playing a pivotal role in Nigeria’s diversification of its economy. APM Terminals additional investments with the acquisition of the new cranes for the terminal will meet the needs of the high influx of cargoes at the ports and support the ease of doing business in Nigeria.
It is worthy to note that APM Terminals has also played a huge role in the fight against COVID-19 in Nigeria. APM Terminals contributed N150million into the Federal Government’s COVID-19 Relief Fund after the initial contribution of $200,000 into the United Nations Basket Fund for the fight against the pandemic in Nigeria. This is highly applaudable.
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