We’re acquiring more equipment to deal with port congestion — APM Terminals

The management of APM Terminals Apapa said on Monday that it had placed orders for more equipment to cope with the significant growth in the volume of cargo at the Lagos Port.

This clarification is coming on the heels of a media report that the Nigerian Ports Authority (NPA) had issued a 30-day ultimatum to the terminal operator to address alleged lapses in its operations, which has reportedly resulted in port congestion.

The ultimatum, which was reportedly given to the company last month, would expire this week.

Speaking on the development, Martin Jacob, managing director of APM Terminals Apapa, attributed the growth in volume to conducive economic environment coupled with the closure of the border with Benin.

He stated that Lagos ports witnessed a spike in volume as cargo, which hitherto used to go to Cotonou now comes through Nigerian ports, with periods such as October witnessing up to 50 percent year-on-year growth in import volume.

“APM Terminals Apapa has expedited the investment in additional equipment, with the first batch of three cranes already in operation after arriving within the last month. A further five cranes are scheduled to arrive within the next few weeks to not only handle the oceangoing vessels but also inject much needed capacity for the needed barging,” Jacob stated.

According to him, the current investment phase, which will cover yard expansion apart from equipment will cost the terminal operator about N65 billion.

“APM Terminals Apapa is committed to delivering the Nigeria Ports Authority’s vision in enhancing the country’s maritime sector,” he assured.

Recall that in 2006, APM Terminals Apapa was awarded the concession to manage, operate and develop the Apapa container terminal at the Lagos Port Complex, after the Federal Government concessioned Nigerian ports with the purpose of improving port services through private investment and expertise.

Also, the 55-hectare facility has 1,005m quay length, 13.5m draft alongside with an annual handling capacity of 1.2 million Twenty-foot Equivalent Units (TEUs) of container.

So far, APM Terminals Apapa said it had invested N130 billion in infrastructure, IT upgrades and modern container handling equipment to improve both quayside and landside operations.