We Are Not Investing $600m AP Moller Counters FG

APM Terminals-Nigeria, the Danish Shipping company has unveiled plan to invest $500 million in Nigeria’s maritime sector.

The funds will be used to expand infrastructure in majorly Lagos and Onne ports facilities, including rail and barge networks “to connect directly to mainline shipping” the company stated yesterday.

The company is not investing $600 million contrary to the federal government’s claim.

Ajuri Ngelale, the Special Adviser to the President On Media and Publicity had claimed in a statement last week that President Bola Ahmed Tinubu secured the $600 million investment from the Danish company during the World Economic Summit in Riyadh, Saudi Arabia.

But in a statement made available to the media on Thursday, titled, ‘Our Vision For Nigerian Ports and Growth’, by the chief executive officer, APM Terminals, Keith Svendsen, the firm said a huge chunk of the investment will be on the Apapa port to increase its draft to allow access for big vessels.

The company’s chief executive stated that talks have been ongoing since February this year on the investment, adding that interaction with the federal government over the deal only intensified last month, noting that the company believe in the country’s future, and the role of foreign capital investments to achieve this.

“At APM Terminals, we believe strongly in the future prospects for the Nigerian economy, and the long-term opportunities that the current economic reforms and invitation for international investments will generate. At Onne, we are concluding a USD115m upgrade project to ensure the terminal has sufficient capacity and capabilities to service the south/eastern Nigeria market and the growth expected in coming years, while the Apapa port continues to offer a unique access to Nigerian importers and exporters to international markets through not just road, but also rail and waterways, by means of barges.

“Having been present there for close to two decades, we believe that Lagos, as the main port, needs further investments to cater for increasing trade volumes and to be able to attract large container vessels. While greenfield terminals like Lekki and later on Badagry will support economic growth in the long run, the more urgent requirement is in our view to upgrade the existing port infrastructure to ensure road, rail and barge networks can connect directly to mainline shipping.

“We have developed plans to undertake the necessary terminal upgrade investments in Apapa to give access to vessels with deep draft and requiring large ship-to-shore cranes. We seek to do this under a long-term agreement with the government to support our ambition to continuously improve the import and especially export opportunities for the country, creating jobs and diversifying opportunities locally.

“As we are still not at the finish line, we have intensified talks with the administration and port authority to make these plans concrete and I’m pleased with the significant progress made towards implementation. That is why I earlier this year publicly told about the proposal to invest more than USD 500 million that we have discussed with the President Tinubu both in February,  and which we further elaborated in late April. It should go hand-in-hand with a long-term partnership.

“For us in APM Terminals, it is important that we not only operate highly efficient terminals, but also that we play a role contributing to the development of the local communities and bring in opportunities for growth and new prospects for Nigerians,” he stated.