ICTSI has terminated a sub-concession agreement to develop and operate a container terminal at Lekki Port, Nigeria, despite its ongoing strategy of investing in Africa.
The port operator’s subsidiary Lekki International Container Terminal Services LFTZ Enterprise (LICTSE) and Lekki Port LFTZ Enterprise (LPLE) have mutually agreed to terminate it due to delays in executing the project.
According to ICTSI, LICTSE will be paid an amount agreed by the parties for the termination of the deal.
In early May this year, ICTSI’s chairman and president Enrique Razon told Bloomberg that the company wanted to invest between US$500m and US$1bn to construct a terminal in all countries in western and eastern Africa.
According to Razon, despite “very high” barriers to entry, Africa has the best margins in the port industry as it is the continent most immune to globalisation shifts.
The Lekki Port project concession, which was awarded in August 2012, gave LICTSE the exclusive right to build and operate the facility for 21 years.
The terminal, which was to be located at Ibeju Lekki, in Lagos State, was initially scheduled for completion by 2016.
The facility was expected to have a handling capacity of 2.5m teu and a quay length of 1,200 m, with an initial draught of 14 m with potential for further dredging to a depth of 16.5 m.