Overall African port utilisation currently exceeds 70% and is expected to reach 80% over the next decade, resulting in worsening port congestion and constrained economic growth. The IMF has projected Nigerian GDP growth rates of 7.2% in 2013 and 7% in 2014, with Africa overall forecasted to see economic growth of 5.5% this year.
In recognition of increasing pressure on trade and economic performance, governments are partnering with private terminal operators to accelerate infrastructure development, create new jobs and attract more investment from world markets through a competitive port system, such as the proposed new mega-port at Badagry, Nigeria.
The New Partnership for Africa’s Development (NEPAD) has estimated Africa’s infrastructure spending gap at US$48bn.
“Ports are linked to the industrial development of the country and we welcome more port investment. We are excited about the Badagry port project and how this multi-purpose facility aligns with our industrial development plans for the nation” said Aganga, who has also served as Nigeria’s Minister of Finance.
APM Terminals’ proposed Badagry mega-port project is one of many initiatives by the company designed to modernise Africa’s infrastructure through investment in transportation infrastructure upgrades.
According to APM Terminals the new Badagry port promises to transform Nigeria’s global trade access by creating the most modern multi-purpose port on the African continent, with container, bulk, petrochemical and ro-ro cargo handling capability just 55 km (34 miles) from the City of Lagos, Nigeria’s commercial and financial hub and fastest growing city.
APM Terminals has interests in nine facilities in Africa including Monrovia in Liberia, Abidjan in the Ivory Coast, Tema in Ghana and Apapa and Onne in Nigeria.