Maersk to Invest $600m for Expanding Port Infrastructure
A.P Moller-Maersk, Danish shipping and logistics company, says it will invest $600m to expand existing port infrastructure to accommodate more container shipping services in Nigerian ports.
This followed closed-door talks between President Bola Tinubu and the company’s Chairman, Mr Robert Maersk Uggla, on the sidelines of the World Economic Forum Special Meeting on Global Collaboration, Growth and Energy for Development in Riyadh, Saudi Arabia, on Sunday.
The President’s official spokesperson, Mr Ajuri Ngelale, revealed the outcome of Sunday’s talks in a statement titled ‘President Tinubu meets Chairman of Danish shipping giant Maersk; secures $600 million investment in Nigerian seaport infrastructure.’
“We believe in Nigeria, and we will invest $600m in existing facilities and make the ports accommodating for bigger ships,” said Mr Maersk.
The CEO explained that this adds to Maersk’s existing investments of over $2bn in Nigerian ports and other activities.
President Tinubu noted that this investment will complement the administration’s ongoing $1bn investment in seaport reconstruction across the eastern and western seaports of Nigeria.
He added that it would further support the country’s port modernisation efforts and port process automation through his administration’s implementation of the national single window project, which is aimed at enhancing trade facilitation, easing import/export flow, reducing corruption at the ports while improving the efficiency and transparency of port processes in Nigeria.
“We appreciate your business and the contribution you have made and continue to make to our country’s economy over time.
“We do not take our partners for granted. A bet on Nigeria is a winning bet. It is also a bet that rewards beyond what is obtainable elsewhere.
“More investment opportunities are available, and my government has worked on various reforms to encourage investments. We need to encourage more opportunities for revenue expansion and minimize trans-shipments from larger ships to smaller ships,” Tinubu said.
The President assured Maersk of his administration’s commitment to collaborating and creating an enabling environment for businesses to thrive in the country.
He cited Maersk’s previous partnership in the development of the Ogun State container terminal as a testament to fruitful partnerships with the reputable logistics company.
Meanwhile, Mr. Maersk highlighted the company’s longstanding engagement in Africa’s most populous nation and his belief in the future of Nigeria.
He said his company had made significant investments of over $2bn in Nigerian ports and other activities.
He emphasised the potential for Nigerian ports to accommodate larger container ships and stressed the need for expanding port infrastructure to meet this demand while reducing the cost of logistics.
“We have seen a significant opportunity for Nigeria to cater for larger container ships. Historically, most of the West African coasts have already been served by smaller ships. Currently, we see an opportunity to deploy larger ships to Nigeria.
“To achieve this, we need to expand the port infrastructure, especially in Lagos, where we need a bigger hub for logistics services. The growth potential is hard to quantify.
“In my humble view, given that Nigeria is the most populous country in Africa, Nigeria should have the best and biggest port and we are very eager to invest, and we will continue that dialogue with the relevant Nigerian authorities to explore further investment opportunities,” the Maersk Chairman said.
The trade relationship between Nigeria and Denmark has been characterised by a steady exchange of goods and services over the years.
In 2021, Nigeria exported goods worth about $231m to Denmark, with crude petroleum making up the bulk of these exports.
Conversely, Denmark exported goods valued at $269m to Nigeria, including products such as margarine, non-fillet frozen fish, and concentrated milk.
Service exports from Denmark to Nigeria in 2020 were valued at $179m, with transportation services being the largest component.
Additionally, both countries have partnered on initiatives related to the green economy to address climate change and are expected to mutually boost employment and economic growth.
In November 2023, Denmark expressed interest in assisting Nigeria with renewable energy, especially wind power, and has pledged to help improve Nigeria’s power supply through solar and biotechnology.
Sunday’s pledge by Maersk furthers ongoing partnership in the maritime sector, where Danish ships are significant carriers of Nigeria’s shipments.
