The federal government has taken a major step towards addressing the problem of congestion and delays at the Lagos ports, which cost Nigeria a whopping $19 billion yearly (according to recent estimates), as contract negotiation between the Nigerian Shippers’ Council (NSC) and China Railway Construction Corporation Limited (CRCC), the preferred bidder for the construction of the Ibadan Inland Dry Port, is near completion.
Head, Public Relations of the Council, Rakiya Zubairu, disclosed this at a recent statement she issued in Lagos.
According to Zubairu, the 80,000 Twenty-foot Equivalent Units (TEUs) capacity Ibadan inland dry port, which has been estimated at US$94,000,000.00, would also boost employment in Oyo State and other cities in the environs.
She said that the Nigerian Shippers’ Council is the guarantor to the concession for the proposed dry port project to be built on the basis of Public Private Partnership agreement in Ibadan, Oyo State capital.
Describing the deal as a major milestone, Zubairu noted that the dry port would provide a competitive cargo sorting centre, bulk breaking as well as cargo-tracking and truck management services.
The statement read: “A major milestone is being witnessed as the negotiation meeting between the Federal Government and CRCC, the preferred bidders for the construction of the Ibadan Inland Dry Port is nearing completion.
“The Nigerian Shippers’ Council is the guarantor to the concession, an eighty thousand (80,000) TEU capacity dry port to be built on the basis of Public Private Partnership agreement in Ibadan, the Oyo State capital.
“On completion, the facility is expected to contribute to addressing the problem of port congestion and gridlock in Apapa as it will be designated a port of destination where cargo will be consolidated for import and export, especially in the South-Western part of Nigeria.”
She further added: “Among other uses, the dry port will provide a competitive cargo sorting centre, bulk breaking as well as cargo-tracking and truck management services. This project, which has been estimated at US$94,000,000.00, will boost employment in Oyo State and other cities in the environs.”
She disclosed that the Lagos-Kano standard gauge railway currently under construction is aligned to the proposed dry port, making it easy to convey cargo from the seaports in Lagos and to all destinations along the route.
“The negotiations emphasised the utilisation of local content at each stage of development and operation of the facility.
“Having concluded this stage, an Updated Full Business Case Compliance report will be produced. A draft agreement will be presented to the Federal Ministry of Justice and sent to the Infrastructure Concession Regulatory Commission, ICRC, for vetting, after which the Minister of Transportation will present the agreement to the Federal Executive Council. The concessionaire will then be taken to the site for sod-turning. It is expected that construction will commence immediately after the ceremony. The time-line for completion is twelve months”, she added.
The negotiation was moderated by the Federal Ministry Of Transportation led by the acting Permanent Secretary,— and the Director, Maritime Services, Auwalu Suleiman, the Director-General of Infrastructure Concession Regulatory Commission, ICRC, Engr. Chidi Izuwa. Amb. Jummai Katagum who represented the Federal Ministry of Finance was also part of the four-day negotiation.
Present at the event was Mrs. Olubamiwo Adeosun, Secretary to Government of Oyo State. The preferred bidder CRCC was led by Deputy Managing Director, Jacques Liao.
The Executive Secretary/CEO of the Nigerian Shippers’ Council, Hassan Bello expressed satisfaction with the proceedings, noting that all parties expressed firm commitment to the actualization of the project.
Facilition of the meeting was enabled by the transaction advisors, Aminu Dikko and Mohammed Kumalia.